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www.insideoutdoor.com<br />
A CHANGING<br />
LANDSCAPE<br />
Annual Retail<br />
Technology Outlook<br />
<strong>Spring</strong> 2008<br />
Investing in<br />
Customers<br />
POS Software<br />
Directory<br />
IP Communications<br />
Primer<br />
Video Touch<br />
Points<br />
PRSRT STD<br />
US POSTAGE<br />
PAID<br />
PERMIT 256<br />
BOLINGBROOK, IL<br />
Printed on 100%<br />
Recycled Paper
Come see us at the Outdoor Retailer Show | samsoniteoutlab.com
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Celebrating 30 years of innovation.
C O N T E N T S<br />
<strong>Spring</strong> 2008<br />
24 TEVA’S HIGH-TECH TOUCH POINT<br />
Internet connectivity and interactive media are making<br />
their way onto the retail sales floor, and Teva’s<br />
new touch-screen program is an early example for<br />
outdoor specialty.<br />
By Martin Vilaboy<br />
20<br />
12<br />
26 POS SOFTWARE DIRECTIONS & DIRECTORY<br />
POS software is handling more and more functions,<br />
from the back office all the way to the sales floor.<br />
Turn to our detailed POS software directory for help<br />
with any upgrade, replacement or migration strategies<br />
that might be in the works.<br />
By Martin Vilaboy<br />
Departments<br />
DATA POINTS<br />
8 NUMBERS WORTH NOTING<br />
Returns on returns; stimulus plans; mobile commerce;<br />
plus more<br />
GEar<br />
34 COOL GEAR, LUKEWARM OUTLOOK<br />
Heat up the camping market<br />
FEATURES<br />
24<br />
12 RETAIL ODYSSEY 2015<br />
In the coming retail landscape, the emphasis behind technology<br />
investment continually will shift away from its capability to<br />
increase operational efficiencies to becoming a key asset for<br />
customer acquisition, retention and business success.<br />
By Martin Vilaboy<br />
20 HEEDING THE CALL OF IP TELEPHONY<br />
Phone and data services typically aren’t a top-of-the-mind issue<br />
for specialty retailers, but new capabilities and cost savings<br />
made possible through IP-based communications are well<br />
worth hearing about.<br />
By Martin Vilaboy<br />
FLOOR SPACE<br />
38 GRAMICCI’S REAL ESTATE INVESTMENT<br />
A better buy plan<br />
BACK OFFICE<br />
40 ON THE RECORDS<br />
Keeping behind the corporate veil<br />
GREENSHEETS<br />
42 CARBON FOOTPRINT 101, PART II<br />
What to expect from an LCA<br />
46 THE GREEN GLOSSARY<br />
Think wikipedia for the eco-minded<br />
6 Letter from the Editor<br />
50 Advertiser Index<br />
4 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
Editor’s Letter<br />
Technology and Tent Stakes<br />
“Challenges and opportunities:” those two words summarize the retail technology<br />
landscape as succinctly as any two words can. And in many ways, they also<br />
encapsulate the state of the outdoor industry.<br />
With the former, the big challenges for specialty retailers involve taking the final<br />
steps in the migration off of legacy systems and completing the long-coming shift<br />
to “next-generation“ platforms, namely digital and Internet technologies. That final<br />
leap will demand justifying new investments; retiring existing assets, some before<br />
the end of their natural lives; and supporting some level of IT functionality at every<br />
individual store front.<br />
Indeed, the Internet has democratized technology, so it’s no longer just the CIOs<br />
and IT staffs of large chains and high-dollar retailers that have to consider its implications.<br />
Just about everyone in the more mainstream segments of retail will need<br />
to leverage increasing levels of retail technology just to keep pace with the opex<br />
reductions and boost to customer relationship management that will be enjoyed by<br />
most contestants on the playing field. With that in mind, Inside Outdoor’s coverage<br />
of retail technology is not limited to this special annual issue. Rather, examining the<br />
ways that technology can help retailers operate more efficiently and touch customers<br />
more creatively will be regular points of emphasis in every coming issue.<br />
Likewise, outdoor is facing some shifts, as well. As in the tech sector, legacy<br />
revenue streams are being pushed by new and emerging opportunities. Since the<br />
Outdoor Industry Association began tracking participation rates in 1998, for instance,<br />
the most popular outdoor activities -- camping, hiking, biking, canoeing -- have experienced<br />
virtually no periods of sustained year-over-year growth. Yet outdoor retail sales<br />
somehow have managed to grow at rates that exceed the annual growth rates of the<br />
overall U.S. non-auto retail sector. That seems to suggest other sales drivers are at<br />
play, and they are not hard to find: fitness, competitive events, trail running, climbing<br />
gyms, sustainability, nutrition, Web services.<br />
Still, the sagging participation rates of primary activities should not be taken lightly.<br />
As far as we can see, getting current customers outside more often -- where<br />
they discover new needs and wear out old gear -- remains the most reliable force<br />
behind the sales of outdoor product. Some would suggest the outdoor lifestyle being<br />
pushed further into the mainstream or “outdoor as fashion” are trends that can<br />
make up for flat sales in core sports participation. We’re just not so sure relying on<br />
what are essentially trend-driven movements is the best long-term business strategy<br />
moving forward, particularly when the lifecycle of fashion and cultural trends seem to<br />
grow shorter and shorter, while consumers seem to grow increasingly fickle. Fitness<br />
enthusiasts, for their part, also can be rather fickle, with the endless litany of “new<br />
and better ways” to get fit.<br />
That’s certainly not to suggest that new opportunities shouldn’t be pursued and<br />
embraced. Quite the contrary, and the outdoor industry can be commended on its<br />
collective willingness and adaptability during the past several years when it comes to<br />
discovering and integrating new sources of revenues and customers.<br />
Rather, the point is that the outdoor industry cannot forget those customer bases<br />
and legacy activities that reside deep within its foundation. “Rip and replace,” after<br />
all, is even harder to do with customers than it is to do with technology platforms.<br />
Martin Vilaboy<br />
Editor-in-Chief<br />
martin@bekapublishing.com<br />
Percy Zamora<br />
Art Director<br />
outdoor@bekapublishing.com<br />
Ernest Shiwanov<br />
Editor at Large<br />
ernest@bekapublishing.com<br />
Editorial Contributors:<br />
R.J. Anderson<br />
Philip Josephson<br />
Berge Kaprelian<br />
Group Publisher<br />
berge@bekapublishing.com<br />
Jennifer Vilaboy<br />
Production Director<br />
jen@bekapublishing.com<br />
Suzanne Urash<br />
Ad Creative Designer<br />
suzanne@cre8groupinc.com<br />
Beka Publishing<br />
Berge Kaprelian<br />
President and CEO<br />
Philip Josephson<br />
General Counsel<br />
Jim Bankes<br />
Business Accounting<br />
Corporate Headquarters<br />
745 N. Gilbert Road<br />
Suite 124, PMB 303<br />
Gilbert, AZ 85234<br />
Voice: 480.503.0770<br />
Fax: 480.503.0990<br />
Email: berge@bekapublishing.com<br />
© 2008 Beka Publishing, All rights reserved.<br />
Reproduction in whole or in any form or<br />
medium without express written permission<br />
of Beka Publishing, is prohibited. Inside<br />
Outdoor and the Inside Outdoor logo are<br />
trademarks of Beka Publishing<br />
MV<br />
6 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
Data Points<br />
Numbers Worth Noting<br />
by Martin Vilaboy<br />
Returns and Retention<br />
Retailers, for good reasons, are not too fond of merchandise<br />
returns, but unfortunately shoppers are. According to an annual<br />
consumer returns survey commissioned by Newgistics, Inc.<br />
and conducted by Harris Interactive, nine out of 10 direct<br />
shoppers cited a convenient returns policy as very important,<br />
important or somewhat important to encouraging them to<br />
shop with a new or unknown online or catalog retailer. More<br />
than two-thirds said the ability to make a return from home was<br />
very important or important when deciding whether to shop<br />
with an online or catalog retailer. On the flip side, 82 percent<br />
of direct shoppers said they are not likely to shop again with a<br />
direct retailer if the return process is inconvenient.<br />
Very<br />
likely<br />
Somewhat<br />
likely<br />
Not very<br />
likely<br />
Not at all<br />
likely<br />
Don’t<br />
know<br />
Very<br />
likely<br />
Somewhat<br />
likely<br />
Not very<br />
likely<br />
Not at all<br />
likely<br />
Don’t<br />
know<br />
Likelihood of shopping again if returns<br />
are CONVENIENT<br />
3%<br />
3%<br />
2%<br />
Source: Newgistics<br />
2%<br />
6%<br />
10%<br />
Source: Newgistics<br />
20%<br />
Likelihood of shopping again if returns<br />
are INCONVENIENT<br />
8 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008<br />
<br />
72%<br />
92%<br />
38%<br />
<br />
82%<br />
44%<br />
Stimulate This<br />
The National Retail Federation estimates the $42.9 billion<br />
will end up in retailers’ tills as a result of President Bush’s<br />
$168 billion dollar Economic Stimulus Plan, which will result<br />
in anywhere from $300 to $1,200 in the pockets of qualifying<br />
consumers. Retailers, however, appear less than confident<br />
about their chances of capitalizing on the opportunity. A good<br />
majority of retailers surveyed by Retail Systems Research said<br />
they will not be making adjusting this spring in order to capture<br />
any lift in spending.<br />
Money Left on the Table?<br />
Will your company be adjusting you current plans to capture<br />
additional revenue from the Economic Stimulus Plan?<br />
35% 65%<br />
Retail Formats with Below Average Sales Gr<br />
Are you planning to increase your inventory levels to meet<br />
increased demand from the Stimulus Plan?<br />
37% 63%<br />
10<br />
Will you be planning special promotions and events to<br />
capture additional sales from the 8.2% Stimulus Plan?<br />
8<br />
Yes<br />
No<br />
77% 23%<br />
Source: Retail Systems Research 6.5%<br />
5.9%<br />
5.5%<br />
6<br />
4.7% 4.7% 4.6% 4.9%<br />
Four Reviews Before Buying Online 4.4% 4.3% 4.2% 4.3%<br />
As much as 684<br />
3.5<br />
percent of online shoppers read at least 2.6%<br />
four reviews before making a purchase, according to data from<br />
2<br />
joint research by PowerReviews and the e-tailing group. The<br />
companies surveyed 1,200 consumers who shopped online at<br />
0<br />
least four times per year and spent at least $500 in aggregate<br />
and found that almost -2 a quarter of the respondents checked at<br />
least eight reviews or more before deciding to buy.<br />
Some 22 percent -4 of respondents said that they “always”<br />
read reviews before making a purchase, while more than four<br />
Source: Newgistics<br />
in 10 said they checked ratings and reviews “most of the time.”<br />
In contrast, just 2 percent of the online shoppers surveyed<br />
said that they “never” read reviews in advance. And a recent<br />
Avenue A|Razorfish study Non-auto found Retail that Sales 55 percent Growth of Around online the Glo<br />
shoppers chose user reviews most frequently when conducting<br />
product research — more Russia than double the 22 percent that used<br />
Nigeria<br />
comparison charts or expert reviews (21 percent).<br />
12.8%<br />
Turkey<br />
11.2%<br />
Indonesia<br />
10.6%<br />
Most Desired Features Vietnam on Retail Web Sites* 10.4%<br />
India<br />
Features<br />
% of Respondents Choosing<br />
10.4%<br />
Philippines<br />
9.7%<br />
User ratings and reviews Argentina 64%<br />
9.6%<br />
Special offers and couponsChina<br />
61%<br />
8.9%<br />
South Africa<br />
7.9%<br />
Videos Thailand 48%<br />
7.7%<br />
Personalization capabilities Mexico 37% 7.2%<br />
Malaysia<br />
7.1%<br />
Games and quizzes 29%<br />
Brazil<br />
6.6%<br />
Source: Forrester Research; Spain *Included consumer electronics, 6.0% travel and banking<br />
sites—key drivers of e-commerce Australiain the U.S.<br />
5.7%<br />
United States<br />
5.2%<br />
South Korea<br />
5.1%<br />
Canada<br />
4.7%<br />
Poland<br />
4.6%<br />
United Kingdom<br />
4.1%
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Very<br />
likely<br />
Somewhat<br />
likely<br />
Not very<br />
likely<br />
Not at all<br />
likely<br />
Don’t<br />
know<br />
Very<br />
likely<br />
Somewhat<br />
likely<br />
Not very<br />
likely<br />
Not at all<br />
likely<br />
Don’t<br />
know<br />
3%<br />
Worker Rights and Wrongs<br />
3%<br />
Employee costs have risen more than 30 percent in the last<br />
five years 2% according to American Business Research. At the<br />
same time, keeping good employees is as crucial as ever. The<br />
ABR survey, for example, reported that 69 percent of customers<br />
stop doing business with a company due to poor service from<br />
Source: Newgistics<br />
employees. What’s more, 96 percent of unhappy customers do<br />
not complain to the establishment but on average tell two other<br />
people about their unsatisfying experience.<br />
All the while, one in every 28.2 employees was apprehended<br />
Likelihood of shopping again if returns<br />
for theft from their employer, says ABR, and just 4.6 percent of<br />
are INCONVENIENT<br />
total retail theft losses resulted in a recovery. In other words, for<br />
every $1 recovered by companies, $20.76 was lost to retail theft.<br />
6%<br />
Internet 10% Accounts for 8% of<br />
Sports Gear Sales<br />
According to figures pulled together 38% by the National<br />
Sporting Goods Association, purchases of sports equipment 82% on<br />
the Internet have gone from 1.4 percent of 44% the total equipment<br />
market in 1999 to 8.1 percent in 2006. In dollars, that’s from $300<br />
million to 2% just less than $2 billion. Since 2000, this represents a<br />
166 percent increase in Internet sports equipment purchases.<br />
Purchases of sports equipment in all channels, by comparison,<br />
rose Source: 14 Newgistics percent in that same time period.<br />
Interestingly enough, NSGA figures show sales of<br />
sports gear over the Internet dipping slightly in 2006<br />
from 2005 figures, suggesting that the growth in<br />
e-commerce sales of sports gear may be leveling off.<br />
1999<br />
20%<br />
Data Points<br />
Sports Internet Sales<br />
10.0%<br />
9.0%<br />
8.0%<br />
7.0%<br />
6.0%<br />
5.0%<br />
4.0%<br />
3.0%<br />
2.0%<br />
1.0%<br />
0%<br />
Source: NSGA<br />
2000<br />
2001<br />
Equipment<br />
2002<br />
Footwear<br />
Linear (Equipment)<br />
Linear (Footwear)<br />
2003<br />
2004<br />
<br />
72%<br />
2005<br />
92%<br />
2006<br />
How Does Your VoIP Service Compare to Your Old Service<br />
(Among companies with 100 or fewer employees that have adopted VoIP)<br />
10 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008<br />
100<br />
10<br />
8<br />
6<br />
4<br />
2<br />
Malaysia<br />
Brazil<br />
Spain<br />
6.0%<br />
Anxiety about sharing personal data is the biggest barrier<br />
Australia<br />
5.7%<br />
to consumer United acceptance States of mobile banking 5.2% and commerce,<br />
with two-thirds South (66 Korea percent) of respondents 5.1% saying so, say<br />
Harris figures.<br />
Taiwan<br />
Service<br />
Italy<br />
France 2.9%<br />
Check bank account balance/transfer/funds<br />
Sweden<br />
35%<br />
2.8%<br />
Receive text message Germany alerts 2.2% 33%<br />
Mobile wallet Switzerland 1.3% 19%<br />
Shopping Japan 0.8% 16%<br />
Wire transfer 9%<br />
Stock trading 9%<br />
Other Source: OECD and TNS Retail Forward 3%<br />
None of the above 53%<br />
Source: Harris Interactive<br />
8.2%<br />
4.7%<br />
6.5%<br />
4.7%<br />
5.9%<br />
4.6% 4.9%<br />
4.4%<br />
5.5%<br />
Buying and Banking On-the-Go<br />
A new Harris Interactive study shows that one in four cell<br />
phone subscribers 0 with mobile Internet access now use their<br />
devices to buy goods and services online with a credit card, and<br />
nearly one in five -2say they would like to someday use cell phones<br />
as a “mobile wallet,” where charges would be billed directly<br />
to their mobile -4accounts. Consumers not currently banking or<br />
buying on-the-go expressed at least some interest in having such<br />
Source: Newgistics<br />
applications on their mobile phones, say Harris researchers. It<br />
should be noted, however, that among the more than 250 million<br />
mobile phone subscribers in the U.S., only about 30 to 40 million<br />
Non-auto Retail Sales Growth Around the Globe<br />
currently take a mobile data plan, and adoption rates of mobile<br />
Internet services have been a bit slower during the past few<br />
Russia<br />
years than the mobile carriers had hoped for.<br />
15.4<br />
Nigeria<br />
12.8%<br />
Turkey<br />
11.2%<br />
Frequency of Indonesia Making Purchases with Mobile Phones 10.6%<br />
(% of owners surveyed)<br />
Vietnam<br />
10.4%<br />
India<br />
10.4%<br />
Frequency<br />
Philippines<br />
Mobile Phone Smartphone<br />
9.7%<br />
Daily Argentina 1% 5% 9.6%<br />
Weekly China 1% 4% 8.9%<br />
Monthly<br />
South Africa<br />
4% 1% 7.9%<br />
Occasionally<br />
Thailand<br />
17% 25% 7.7%<br />
Mexico<br />
7.2%<br />
Source: Harris Interactive<br />
7.1%<br />
6.6%<br />
Canada<br />
4.7%<br />
Poland<br />
4.6%<br />
United Kingdom<br />
4.1%<br />
Interest in Banking, BelgiumCommerce 4.0% or Investment Apps<br />
for Mobile Device Netherlands<br />
3.6%<br />
3.6%<br />
3.0%<br />
Interest<br />
(% of respondents)<br />
4.3% 4.2% 4.3%<br />
Business Challenges Driving the Use<br />
More Minorities Shopping Online<br />
of Customer-Driven Business Intelligence<br />
According to a new report from The Media Audit, online<br />
shopping by African-Americans, Must be able to respond Asians, more quickly Hispanics and other<br />
minorities has increased<br />
to changes<br />
dramatically<br />
in consumer<br />
during<br />
demand<br />
the past five years.<br />
Need a better match between<br />
After surveying adults in 88 products markets, and customers Media Audit found that<br />
about 41 percent of Must both improve African-Americans customer service and Hispanics<br />
now shop online, compared without increasing to about payroll 27 costspercent five years<br />
ago. Among Asians, 70 percent Difficult now to differentiate shop online compared to<br />
from competitors<br />
56 percent five years ago. Overall, among all adults surveyed,<br />
Need to reduce out-of-stocks<br />
about 58 percent say they shop online.<br />
Need to reduce inventory<br />
and improve turns<br />
Rapid growth is driving us into new<br />
markets - need better store selection tools<br />
3.5% 3.9<br />
2.6%<br />
0 5 10 15
Very<br />
likely<br />
Somewhat<br />
likely<br />
Not very<br />
likely<br />
Not at all<br />
likely<br />
Don’t<br />
know<br />
Very<br />
likely<br />
Somewhat<br />
likely<br />
Not very<br />
likely<br />
Not at all<br />
likely<br />
Don’t<br />
know<br />
3%<br />
Worker Rights and Wrongs<br />
3%<br />
Employee costs have risen more than 30 percent in the last<br />
five years 2% according to American Business Research. At the<br />
same time, keeping good employees is as crucial as ever. The<br />
ABR survey, for example, reported that 69 percent of customers<br />
stop doing business with a company due to poor service from<br />
Source: Newgistics<br />
employees. What’s more, 96 percent of unhappy customers do<br />
not complain to the establishment but on average tell two other<br />
people about their unsatisfying experience.<br />
All the while, one in every 28.2 employees was apprehended<br />
Likelihood of shopping again if returns<br />
for theft from their employer, says ABR, and just 4.6 percent of<br />
are INCONVENIENT<br />
total retail theft losses resulted in a recovery. In other words, for<br />
every $1 recovered by companies, $20.76 was lost to retail theft.<br />
6%<br />
Internet 10% Accounts for 8% of<br />
Sports Gear Sales<br />
According to figures pulled together 38% by the National<br />
Sporting Goods Association, purchases of sports equipment 82% on<br />
the Internet have gone from 1.4 percent of 44% the total equipment<br />
market in 1999 to 8.1 percent in 2006. In dollars, that’s from $300<br />
million to 2% just less than $2 billion. Since 2000, this represents a<br />
166 percent increase in Internet sports equipment purchases.<br />
Purchases of sports equipment in all channels, by comparison,<br />
rose Source: 14 Newgistics percent in that same time period.<br />
Interestingly enough, NSGA figures show sales of<br />
sports gear over the Internet dipping slightly in 2006<br />
from 2005 figures, suggesting that the growth in<br />
e-commerce sales of sports gear may be leveling off.<br />
1999<br />
20%<br />
Data Points<br />
Sports Internet Sales<br />
10.0%<br />
9.0%<br />
8.0%<br />
7.0%<br />
6.0%<br />
5.0%<br />
4.0%<br />
3.0%<br />
2.0%<br />
1.0%<br />
0%<br />
Source: NSGA<br />
2000<br />
2001<br />
Equipment<br />
2002<br />
Footwear<br />
Linear (Equipment)<br />
Linear (Footwear)<br />
2003<br />
2004<br />
<br />
72%<br />
2005<br />
92%<br />
2006<br />
How Does Your VoIP Service Compare to Your Old Service<br />
(Among companies with 100 or fewer employees that have adopted VoIP)<br />
10 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008<br />
100<br />
10<br />
8<br />
6<br />
4<br />
2<br />
Malaysia<br />
Brazil<br />
Spain<br />
6.0%<br />
Anxiety about sharing personal data is the biggest barrier<br />
Australia<br />
5.7%<br />
to consumer United acceptance States of mobile banking 5.2% and commerce,<br />
with two-thirds South (66 Korea percent) of respondents 5.1% saying so, say<br />
Harris figures.<br />
Taiwan<br />
Service<br />
Italy<br />
France 2.9%<br />
Check bank account balance/transfer/funds<br />
Sweden<br />
35%<br />
2.8%<br />
Receive text message Germany alerts 2.2% 33%<br />
Mobile wallet Switzerland 1.3% 19%<br />
Shopping Japan 0.8% 16%<br />
Wire transfer 9%<br />
Stock trading 9%<br />
Other Source: OECD and TNS Retail Forward 3%<br />
None of the above 53%<br />
Source: Harris Interactive<br />
8.2%<br />
4.7%<br />
6.5%<br />
4.7%<br />
5.9%<br />
4.6% 4.9%<br />
4.4%<br />
5.5%<br />
Buying and Banking On-the-Go<br />
A new Harris Interactive study shows that one in four cell<br />
phone subscribers 0 with mobile Internet access now use their<br />
devices to buy goods and services online with a credit card, and<br />
nearly one in five -2say they would like to someday use cell phones<br />
as a “mobile wallet,” where charges would be billed directly<br />
to their mobile -4accounts. Consumers not currently banking or<br />
buying on-the-go expressed at least some interest in having such<br />
Source: Newgistics<br />
applications on their mobile phones, say Harris researchers. It<br />
should be noted, however, that among the more than 250 million<br />
mobile phone subscribers in the U.S., only about 30 to 40 million<br />
Non-auto Retail Sales Growth Around the Globe<br />
currently take a mobile data plan, and adoption rates of mobile<br />
Internet services have been a bit slower during the past few<br />
Russia<br />
years than the mobile carriers had hoped for.<br />
15.4<br />
Nigeria<br />
12.8%<br />
Turkey<br />
11.2%<br />
Frequency of Indonesia Making Purchases with Mobile Phones 10.6%<br />
(% of owners surveyed)<br />
Vietnam<br />
10.4%<br />
India<br />
10.4%<br />
Frequency<br />
Philippines<br />
Mobile Phone Smartphone<br />
9.7%<br />
Daily Argentina 1% 5% 9.6%<br />
Weekly China 1% 4% 8.9%<br />
Monthly<br />
South Africa<br />
4% 1% 7.9%<br />
Occasionally<br />
Thailand<br />
17% 25% 7.7%<br />
Mexico<br />
7.2%<br />
Source: Harris Interactive<br />
7.1%<br />
6.6%<br />
Canada<br />
4.7%<br />
Poland<br />
4.6%<br />
United Kingdom<br />
4.1%<br />
Interest in Banking, BelgiumCommerce 4.0% or Investment Apps<br />
for Mobile Device Netherlands<br />
3.6%<br />
3.6%<br />
3.0%<br />
Interest<br />
(% of respondents)<br />
4.3% 4.2% 4.3%<br />
Business Challenges Driving the Use<br />
More Minorities Shopping Online<br />
of Customer-Driven Business Intelligence<br />
According to a new report from The Media Audit, online<br />
shopping by African-Americans, Must be able to respond Asians, more quickly Hispanics and other<br />
minorities has increased<br />
to changes<br />
dramatically<br />
in consumer<br />
during<br />
demand<br />
the past five years.<br />
Need a better match between<br />
After surveying adults in 88 products markets, and customers Media Audit found that<br />
about 41 percent of Must both improve African-Americans customer service and Hispanics<br />
now shop online, compared without increasing to about payroll 27 costspercent five years<br />
ago. Among Asians, 70 percent Difficult now to differentiate shop online compared to<br />
from competitors<br />
56 percent five years ago. Overall, among all adults surveyed,<br />
Need to reduce out-of-stocks<br />
about 58 percent say they shop online.<br />
Need to reduce inventory<br />
and improve turns<br />
Rapid growth is driving us into new<br />
markets - need better store selection tools<br />
3.5% 3.9<br />
2.6%<br />
0 5 10 15
Retail Odyssey<br />
2015<br />
Shifts in consumer behavior raise the relevance<br />
of retail technology investments<br />
by Martin Vilaboy<br />
and efficiency become<br />
significantly more important during<br />
times of economic uncertainty,” says<br />
“Technology<br />
Scott Kreisberg, CEO of One Step Retail<br />
Solutions, a provider of point of sale software for<br />
small to mid-sized retailers.<br />
Kreisberg’s words certainly contain an element of<br />
common sense, but his assessment may or may not<br />
carry weight with those who control retail capital expenditure<br />
budgets, particularly those within the ranks<br />
of small to mid-sized retailers.<br />
What appears more certain, however, is the closure<br />
of some longer-term cycles and the maturing of<br />
a few trends that will “drive more change in the way<br />
consumers shop in the next 10 years than it has in<br />
the last 20 years,” according to a study on the future<br />
12 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
ADAPTIVE COMFORT
ource: Newgistics<br />
of retail from TNS Retail Forward and PricewaterhouseCoopers.<br />
And everywhere one looks, it’s technology of some<br />
sort that is a key enabler, cause or requirement of the<br />
coming changes. Specifically, that includes technological<br />
advancements in the areas of connectivity and<br />
collaboration (wireline and wireless), customer and<br />
real-time data mining and management, predictive capabilities<br />
and multimedia. A bit further down the road<br />
await a few emerging technologies such as biometrics,<br />
including facial, voice and fingerprint recognition; iris<br />
and retinal scanning; and self-activated agents that will<br />
perform routine tasks without human intervention.<br />
“Technology will be 72% pervasive in 2015,” researchers<br />
from TNS Retail Forward and PricewaterhouseCoopers<br />
92%<br />
predict. “Falling costs, widespread availability and adoption<br />
of devices, a working infrastructure and standardization<br />
will accelerate the integration of technology.”<br />
Indeed, in the retail reality of the next decade, technology-based<br />
platforms and solutions that are considered<br />
the “gold standard” today will move closer to<br />
mainstream adoption levels, the study suggest. That’s<br />
true even for small to mid-sized retailers, for whom<br />
technology traditionally has not been a top priority, as<br />
the emphasis behind tech investments continues to shift<br />
from being a means of increasing efficiencies to being a<br />
key asset for customer retention and business success.<br />
At the core, of course, is the Web and Internet protocol,<br />
or IP, which often is thought of as simply meaning<br />
“on the public Internet,” yet IP means so much more.<br />
One big reason why Internet technologies will become<br />
vastly more important is because “e-commerce” represents<br />
the only way for many retailers without a global<br />
footprint to compete globally. And make no mistake, the<br />
rapid ascent of the middle-class in developing countries<br />
around the global is where most everyone expects largescale<br />
growth to come<br />
38%<br />
<br />
from during the next several years.<br />
Assuming that barriers to global 82% trade continue to<br />
come down, while developing<br />
44%<br />
markets continue to<br />
phase out restrictions on foreign retailer operations and<br />
liberalize regulation of direct foreign investment, retailers<br />
in 2015 “will do business in a true global economy<br />
– global customer base, global sourcing, global outsourcing<br />
pool, global reach,” the TNS and PwC study<br />
predicts. “Global scope will be a necessity, not an option,<br />
to grow the top line and bolster the bottom line.”<br />
All the while, global sourcing will become a critical<br />
component of differentiated assortments at competitive<br />
price points.<br />
Retail issues in developed markets around the<br />
globe, meanwhile, “basically will be a mirror image of<br />
issues confronted by the U.S. economy – aging populations,<br />
shrinking share of retail spending and increased<br />
spending on healthcare,” says PwC and TNS Retail<br />
Forward. “In contrast, populations in developing<br />
markets will remain relatively young and will increase<br />
share of retail spending.”<br />
ikelihood of shopping again if returns<br />
re CONVENIENT<br />
3%<br />
3%<br />
2%<br />
2%<br />
6%<br />
10%<br />
ource: Newgistics<br />
20%<br />
ikelihood of shopping again if returns<br />
re INCONVENIENT<br />
ports Internet Sales<br />
0.0%<br />
9.0%<br />
8.0%<br />
7.0%<br />
6.0%<br />
5.0%<br />
4.0%<br />
3.0%<br />
2.0%<br />
14 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008<br />
Developing markets, meanwhile, will continue to<br />
build their pool of university-educated labor and talent,<br />
say analysts, shifting the nucleus of knowledge<br />
workers. “Trend-spotters will want to set up camp in<br />
developing markets, especially Asia, which will begin<br />
to eclipse developed markets as a hotbed of cultural<br />
and retail market influence,” argue PwC and TNS Retail<br />
Forward analysts.<br />
“Most major retailers will be out of expansion room<br />
in the United Retail States Formats for with their Below core concepts Average by Sales 2015,” Growth<br />
they warn. In other words, very few formats will grow<br />
at a rate exceeding the overall retail sales growth rate,<br />
10<br />
and most areas will experience slowing rates of growth<br />
8.2%<br />
compared to earlier in the millennium, according to forecasts<br />
from the U.S. 6.5% Department of Commerce. “Players<br />
8<br />
5.9%<br />
will need to turn elsewhere for growth—new 5.5%<br />
6<br />
concepts,<br />
4.7%<br />
new customer segments,<br />
4.7% 4.6% 4.9%<br />
new geography, 4.4% 4.3% new 4.2% categories,”<br />
4says PwC and TNS Retail Forward.<br />
3.5% 3.9% 3.5%<br />
4.3%<br />
2.6%<br />
2.6% 3.1%<br />
That’s not the best news for U.S.-based companies<br />
looking 2 to expand globally, as large European retailers<br />
already have a bit of a head start when it comes to<br />
operating 0 on an international scale.<br />
And going global is not just about large scale growth.<br />
-2<br />
In many ways, what makes the Internet’s much ballyhooed<br />
long tail worth wagging is the affordable access<br />
-4<br />
it provides to geographic expansion, since that is precisely<br />
what Source: facilitates Newgistics “economies of small-scale,” so to<br />
speak. In other words, global scale may be the only way<br />
Non-auto Retail Sales Growth Around the Globe<br />
Russia<br />
15.4%<br />
Nigeria<br />
12.8%<br />
Turkey<br />
Indonesia<br />
Vietnam<br />
India<br />
Philippines<br />
Argentina<br />
China<br />
South Africa<br />
Thailand<br />
Mexico<br />
Malaysia<br />
Brazil<br />
Spain<br />
Australia<br />
United States<br />
South Korea<br />
Canada<br />
Poland<br />
United Kingdom<br />
Belgium<br />
Netherlands<br />
Taiwan<br />
Italy<br />
France<br />
Sweden<br />
Germany<br />
Switzerland<br />
Japan<br />
11.2%<br />
10.6%<br />
10.4%<br />
10.4%<br />
9.7%<br />
9.6%<br />
8.9%<br />
7.9%<br />
7.7%<br />
7.2%<br />
7.1%<br />
6.6%<br />
6.0%<br />
5.7%<br />
5.2%<br />
5.1%<br />
4.7%<br />
4.6%<br />
4.1%<br />
4.0%<br />
3.6%<br />
3.6%<br />
3.0%<br />
2.9%<br />
2.8%<br />
2.2%<br />
1.3%<br />
0.8%<br />
0 5 10 15 20<br />
Source: OECD and TNS Retail Forward
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1999<br />
Must<br />
to generate sufficient volume to make the long tail Business be able to respond Challenges more quickly<br />
Equipment<br />
Driving the Use<br />
to changes in consumer demand<br />
economically productive for lots of players. And of Customer-Driven Business Intelligence<br />
Footwear<br />
Need a better match between<br />
Linear (Equipment) over the next decade or so, argues Elaine Pollock,<br />
products and customers<br />
Must be<br />
Equipment executive vice president at TNS Retail Forward<br />
Must able improve to respond customer more service quickly<br />
Linear (Footwear)<br />
to without changes increasing consumer payroll demand costs<br />
Footwear and lead author of the Retailing 2015 study, it’s<br />
Need a better match between<br />
Linear (Equipment) likely we will see a decline in the “mass-appeal approach”<br />
to retailing in favor of “niche merchandis-<br />
Must improve customer service<br />
products<br />
Difficult to<br />
and<br />
differentiate<br />
A<br />
from competitors<br />
customers<br />
Linear (Footwear)<br />
without Need to increasing reduce out-of-stocks payroll costs<br />
ing” and personalization.<br />
s Your VoIP Service Compare to Your Old Service<br />
Need Difficult to reduce to differentiate inventory<br />
GA<br />
panies with 100 or fewer employees “The Internet that have will adopted exert VoIP) more influence—continuing<br />
and from improve competitors turns<br />
to grow rapidly as a retail channel, but, Rapid growth Need to is reduce driving out-of-stocks us into new<br />
markets - need better store selection tools<br />
even more importantly, continuing to grow exponentially<br />
as the conduit to the vast marketplace<br />
and<br />
s Your VoIP Service Compare to Your Old Service<br />
Fragmented<br />
Need<br />
views<br />
to reduce inventory<br />
of our<br />
improve<br />
customers<br />
panies with 100 or fewer employees that have adopted VoIP)<br />
are costing us sales<br />
turns<br />
outside traditional space,” she says.<br />
Rapid growth is driving us into new<br />
markets - need better Need store to selection reduce shrink tools<br />
Along with other emerging trends, such as demographic<br />
dichotomies and household downsiz-<br />
are costing us sales 0 0.5 1<br />
Fragmented views of our customers<br />
84%<br />
84% 60% ing, 64% consumers’ instantaneous access to infinite<br />
80% 92%<br />
A Lot of Need Influence to reduce shrink No Influence<br />
choices online 84% and 92% the growing ability for consumers<br />
8% to remix, adapt or create what they cannot find<br />
0 0.5 1<br />
Some Influence<br />
84% 24% 60% will 64% begin to splinter mainstream retail into smaller<br />
niche offerings, 84% 92%<br />
80% 92%<br />
A Lot of Influence No Influence<br />
84%<br />
Source: Retail Systems Research<br />
8% 8% 28%<br />
suggests Pollock, even down<br />
16%<br />
16%<br />
12% 4% 4%<br />
Some Influence<br />
8% 8% to 8% “units of one.” Constant connectivity and the<br />
4% 4% 4% 4%<br />
24%<br />
anywhere/anyway/anytime access to products<br />
Source: Retail Systems Research<br />
8% 8% and 28% information 16% is leading to what PwC and TNS<br />
16%<br />
12% 4% 4%<br />
8% 8% call “perfect 4% product 4% 4% access” 4% – availability of the<br />
right product, at the right place, at the right time – Opportunities Retailers See to Improve<br />
orse About the Same VoIP Better<br />
which in turn allows shoppers to buy less of “what Satisfaction Across All Channels<br />
is popular” and more of “what suits them.”<br />
tar<br />
In a global e-commerce economy, notions such Opportunities Create single Retailers brand See to Improve 87%<br />
12%<br />
orse About the Same VoIP Better<br />
identity across all channels<br />
as “limited editions,” customization and “fast fashion”<br />
will replace “stack it high and let it fly” as the take delivery or return a item<br />
65%<br />
23% 12%<br />
Satisfaction Across All Channels<br />
Allow customers to purchase,<br />
tar<br />
Create across single channels brand<br />
u recommend VoIP profitability service to mantra, Pollock and her team argue.<br />
87%<br />
12%<br />
Allow inventory<br />
identity<br />
allocated<br />
across all<br />
from<br />
channels<br />
one<br />
ness peers? The general rule of thumb that 80 percent of sales<br />
47% 36% 16%<br />
channel Allow customers be used to for purchase, another<br />
come from 20 percent of SKUs may no longer apply, take delivery or return a item<br />
65%<br />
23% 12%<br />
Improve operational across execution channels<br />
u recommend VoIP as service the other to 80 percent of units could represent an<br />
71% 26%<br />
Allow inventory allocated<br />
across all<br />
from<br />
channels<br />
one<br />
ness peers? increasing share of sales and profits.<br />
47% 36% 16%<br />
100<br />
channel to be used for another<br />
34% 21% 39%<br />
<<br />
Offer customized and<br />
“The economics of scarcity will Employees<br />
35% 51% 14%<br />
give way to the<br />
Improve<br />
unique<br />
operational<br />
product<br />
execution<br />
offering<br />
71% 26%<br />
economics of abundance,” Pollock says.<br />
Explore across new all channels,<br />
Granted, online sales currently account for only<br />
(i.e. mobile phones) 26% 40% 34%<br />
100<br />
34% 21% 39%<br />
<<br />
Offer customized and 35% 51% 14%<br />
about 7 percent of sales among outdoor<br />
Employees<br />
stores with Consistent unique and clear product explanation offering<br />
an e-commerce-enable Web presence, according<br />
of product features and<br />
61% 33% 6%<br />
100<br />
information Explore across new channels,<br />
24% to figures from 52%<br />
><br />
Outdoor Industry Association. But<br />
(i.e. mobile phones) 26% 40% 34%<br />
Employees<br />
Improve our promotional<br />
53% 38% 9%<br />
there is more to it than your Web site’s level of e- Consistent and clear effectiveness explanation<br />
of product features and<br />
61% 33% 6%<br />
commerce enablement or “online sales” 100 in the traditional<br />
60 sense. It’s about 80 consumers’ 100 Employees<br />
Very Important<br />
Not very important<br />
information across channels<br />
24% 52%<br />
><br />
20 40 expectations, and<br />
Improve our promotional<br />
53% 38% 9%<br />
the challenges the retail industry faces in its attempt<br />
effectiveness Somewhat Important<br />
20<br />
2 to 3become more 4 customer-centric 5 in a world where<br />
40 customers 60 are more 80diverse, 100 more educated, more<br />
Source: Retail Systems ResearchVery Important<br />
Not very important<br />
mmend Recommend demanding and Highly fully Recommend able to go somewhere else to<br />
Somewhat Important<br />
2 get 3exactly what 4 they want the 5 way they want it.<br />
Consumers, therefore, says Brian Kilcourse, managing<br />
partner for Retail Systems Research, “no longer<br />
Source: Retail Systems Research<br />
tar<br />
Consider, for example, a recent Harris Poll commissioned<br />
mmend<br />
tar<br />
by Chordiant Software in which a full 95<br />
Recommend Highly Recommend<br />
percent of consumer respondents said it was at least<br />
somewhat important that companies know “who I am,<br />
my buying history, past problems or complaints, preferences<br />
and billing records.” More than a third said<br />
knowledge of their personal history was important<br />
and more than a quarter said it was very important.<br />
see retailers’ traditional differentiators (product availability<br />
and price) as sufficient to win their loyalty.”<br />
So it’s not surprising that more than 50 percent of<br />
retailers responding to an in-store technology survey<br />
said their biggest challenge lying ahead is improving<br />
customer service while holding the line on cost, versus<br />
the 28 percent who said it was the troubling economic<br />
1999<br />
, Adds,<br />
Changes<br />
s, Adds,<br />
Changes<br />
2000<br />
2000<br />
Management<br />
Management<br />
2001<br />
2001<br />
Call Quality<br />
Call Quality<br />
2002<br />
2002<br />
Reliability<br />
Reliability<br />
2003<br />
2003<br />
Routing<br />
Routing<br />
2004<br />
2004<br />
Features<br />
Features<br />
2005<br />
Capacity<br />
2005<br />
Capacity<br />
2006<br />
2006<br />
Multi-Location<br />
Multi-Location<br />
16 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008<br />
Business Challenges Driving the Use<br />
of Customer-Driven Business Intelligence
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owth Around the Globe<br />
picture. 15.4% Incidentally, among the “retail winners”<br />
12.8% surveyed by Retail Systems Research,<br />
11.2% defined as those retail companies that outperform<br />
the pack in a number of key performance<br />
10.6%<br />
10.4%<br />
10.4% indicators, virtually none cited the economy as<br />
9.7% their biggest challenge, says Kilcourse.<br />
9.6%<br />
“Gas may be at an all-time high and projected<br />
to climb in the next few weeks, and [the<br />
8.9%<br />
7.9%<br />
7.7% consumer] may have to trade down in product<br />
7.2%<br />
quality, but she still expects retailers to know<br />
7.1%<br />
.6%<br />
her and cater to her needs,” says Paula Rosenblum,<br />
Retail Systems Research analyst.<br />
%<br />
One upshot of this transition to “demandbased<br />
management” (what the customer<br />
wants versus what the customer is forced to<br />
purchase) is an increasing investment in the<br />
management of customer data and the ability<br />
to react to real-time information. Customer<br />
data will be used not just for marketing and<br />
mailings or to identify best customers but will<br />
become a key asset to retailers, says Pollock,<br />
directly tied to inventory planning, anticipating<br />
customers’ desires and managing the business<br />
through business intelligence.<br />
10 It 15 also will require 20 whole new levels of vendor<br />
collaboration and total visibility. And, of course,<br />
d<br />
higher levels of security will be a prerequisite.<br />
“Demand-based management can succeed only<br />
with real-time data information delivered through<br />
increasingly newer forms of technology delivery systems,”<br />
says PwC and TNS Retail Forward.<br />
iving the Use<br />
Meanwhile, retail brands that provide access to the<br />
cross-channel fulfillment, say RSR surveys. Among<br />
those that don’t, the top organizational inhibitor currently<br />
presenting a barrier to becoming an efficient<br />
multi-channel retailer was legacy technologies.<br />
Again, this is more than online sales versus brick<br />
Top Concerns/Challenges that SMB Retailers Say They Face<br />
and mortar sales. Rather, Pollock and her peers fully<br />
expect a melding of the two. In the coming decade,<br />
they Real-Time argue, Visibility online efficiencies and automation will<br />
iness Intelligence<br />
same information and inventory through multiple channels<br />
will have a distinct competitive advantage, Kil-<br />
all manner of interactive kiosks and digital media,<br />
Throughout be introduced the organizationinto the brick-and-mortar world, and<br />
High Staff Turnover<br />
course suggests. “Multi-channel retailing has become inextricably<br />
intertwined with consumers’ sense of what a nectivity will bring unprecedented levels of infor-<br />
smart carts, location-based advertising and IP con-<br />
retailer’s brand value is relative to their lifestyle needs.” mation-delivery Capital Constraints and extended product accessibility<br />
Already, more than 60 percent of “retail winners,” directly to the sales floor, even to the point of creating<br />
“endless aisles.”<br />
as defined by Retail Systems Research, say they enable<br />
Store-Level IT Investment<br />
“Interactions will be increasingly natural, such as<br />
Technology Enablers for<br />
voice activation,” say PwC and TNS analysts. “Selfactivated<br />
Expectations agents will perform routine tasks without<br />
Meeting High Customer<br />
More Customer-Centric Approach<br />
Must be capable of capturing accurate human intervention.”<br />
Modern POS<br />
product and customer information on each It’s a lot to keep 0 10 20 30 40 50 60<br />
tabs on, for sure. Managing complexity<br />
and diversity in a business that Percentage must span of the Respondents globe<br />
transaction<br />
Channel transparency<br />
“One view” of the customers across all<br />
channels<br />
while also SMBreaching out<br />
All<br />
to<br />
Retailers<br />
“the niche of one” presents a<br />
huge challenge for retailers both large and small.<br />
Winners reduce or even eliminate data and<br />
Continuous updates analytic latencies, starting with continuous<br />
Source: An unstable Gartner Group economy doesn’t make things easier,<br />
0 0.5 1feeds from selling environment<br />
and likely will lead to longer sales cycles for retail<br />
No Influence<br />
technology vendors and more due diligence on the<br />
Segregated data<br />
Used for subsequent analysis (reduces<br />
impact on transaction systems)<br />
part of retailers.<br />
Retail winners, however, are fully aware that in<br />
Simply GUI<br />
Retailers want an interface that has the<br />
look and feel of a spreadsheet<br />
both How the Winners worst of Focus times on and Customer-Centricity<br />
the best of times, focus<br />
Provide canned reports<br />
Winners generate regular production of<br />
standard reports from production systems<br />
using “reporting tools”<br />
Source: Retail Systems Research<br />
See to Improve<br />
18 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008<br />
Channels<br />
Multi-channel Initiative that Have or Could Have Impact<br />
Ensuring product information<br />
and pricing is up to date and<br />
consistent across channels<br />
Enabling cross-channel<br />
fulfillment<br />
Cross selling and<br />
personalized promotions<br />
Same day shipping & simple,<br />
consistent returns<br />
Synchronizing customer<br />
and inventory information<br />
across channels<br />
Enabling real time views of<br />
cross-channel inventory<br />
Information sharing with<br />
merchandise vendors on<br />
product features and availability<br />
Winners<br />
Source: Retail Systems Research<br />
0 20% 40% 60% 80%<br />
Others<br />
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Educate and empower<br />
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Heeding<br />
the CALL<br />
of IP Telephony<br />
Providers of advanced communications<br />
solutions DIAL INTO specialty retail<br />
by Martin Vilaboy<br />
Small and specialty brick-and-mortar retail operations<br />
haven’t exactly been a primary target for<br />
providers of data and communications services.<br />
That’s probably no surprise, since most retailers<br />
connectivity needs have been fairly modest<br />
– T-1 Internet connections or less, a handful of phones,<br />
mostly local calling, with some messaging – certainly less<br />
than a few other small business verticals, such as small<br />
law and medical offices, tech start-ups, financial services<br />
and local banks, to name a few.<br />
But independent retailers, all of a sudden, have appeared<br />
squarely on the radar of providers of advanced<br />
and emerging connectivity and communications services.<br />
It’s not so much that specialty stores have seen dramatic<br />
changes in their voice and data needs, though changes in<br />
the way we all communicate are occurring. It’s more that<br />
20 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
many retailers fit the mold of operations that stand to reap the<br />
most gains from the capabilities that can and are being wrought<br />
by advanced communications.<br />
Touting “enterprise-class functionality at small business prices”<br />
and overall savings in voices services spending, groups of advanced<br />
communications providers have zeroed in on businesses<br />
that operate multiple offices or branch locations (each with about<br />
five phone lines or less); owners-managers that need to be accessible<br />
but rarely can be found at their desks; employees who<br />
share desks and phone lines; modest local networking requirements<br />
with little or no “telecom equipment” on site; and some<br />
customer service functions moving to the Web. Sound familiar?<br />
For most purposes, we’re talking here primarily about “IP<br />
telephony,” also known as “VoIP,” or “voice over Internet protocol.”<br />
It’s important to note that while IP is short for “Internet<br />
protocol,” it doesn’t necessarily mean on or utilizing the public<br />
“Internet,” nor is it limited to PC-based calling. IP just happens<br />
to be the protocol behind the “Internet” we all know and use.<br />
In other words, while the much-advertised Vonage telephone<br />
service, for example, sends calls over the public Internet,<br />
other providers of IP communications have built private IPbased<br />
networks that in no way ever touch the public Internet,<br />
and therefore are not susceptible to the quality and reliability<br />
issues of the public Internet. But by being fully compatible and<br />
interoperable with the widely available and easy-to-access public<br />
Internet, IP networks allow providers to develop and deliver<br />
new and existing communications services much more affordably<br />
than ever before, often on a nationwide or global basis.<br />
Use of VoIP Products and Service by North American<br />
Businesses, 2005<br />
Small Businesses<br />
Medium-Sized<br />
Businesses<br />
Large Businesses<br />
14% 23% 36%<br />
Source: Infonetics Research<br />
For starters, on IP-based “packet switched” networks, time<br />
and distance are less relevant than in the old world of the “circuit<br />
switched” telephone networks, so the line between local<br />
and local distance calling has been blurred, and as such perminute<br />
pricing plans are all but disappearing, much as has happened<br />
with cell phone plans.<br />
So, if you currently are paying per-minute fees for long distance,<br />
and your monthly phone bill is significant, IP telephony<br />
services definitely should be a consideration moving forward.<br />
At the very least, IP telephony providers tend to offer free or<br />
unlimited “on-net” calling, such as the calls between dispersed<br />
branch locations.<br />
Of course, phones bill are a fairly modest chunk of retailer<br />
operating expenses, so even a good percentage of savings may<br />
not necessarily be enough to encourage a switch in telephony<br />
services. Savings can be driven further, however, by bundling<br />
landline voice services with other applications such as Internet<br />
access or even mobile services. The upside for subscribers<br />
of bundled plans are one point of contact for all services (i.e.<br />
one bill to pay) and discounts for buying multiple services<br />
from one provider.<br />
Source: 8.0% NSGA<br />
7.0%<br />
Linear (Footwear)<br />
6.0%<br />
How Does Your VoIP Service Compare to Your Old Service<br />
(Among 5.0% companies with 100 or fewer employees that have adopted VoIP)<br />
4.0%<br />
100<br />
3.0%<br />
2.0%<br />
801.0%<br />
60<br />
40<br />
20<br />
0<br />
9.0%<br />
0%<br />
68%<br />
12%<br />
8% Linear 8% (Footwear) 28%<br />
20%<br />
16%<br />
8% 8%<br />
Source: NSGA<br />
Cost<br />
1999<br />
84% 60% 64% 80% 92%<br />
84% Equipment<br />
84% 92%<br />
Moves, Adds,<br />
Changes<br />
2000<br />
Footwear 8%<br />
Linear (Equipment)<br />
24%<br />
Management<br />
2001<br />
Call Quality<br />
2002<br />
Reliability<br />
2003<br />
16% 12% 4% 4%<br />
4% 4% 4% 4%<br />
Routing<br />
2004<br />
Features<br />
Capacity<br />
How Does Your VoIP Service Compare to Your Old Service<br />
(Among companies with 100 or fewer employees that have adopted VoIP)<br />
VoIP Worse About the Same VoIP Better<br />
100<br />
Multi-Location<br />
Source: Savatar<br />
80<br />
This “convergence” of services is where IP telephony gets<br />
really<br />
60<br />
interesting, beyond just the potential cost savings. To<br />
simplify Would you matters, recommend convergence VoIP service is when to<br />
84% 60% voice and messaging<br />
64%<br />
services, your business 68%<br />
Internet peers? connectivity and 80% all related data<br />
92%<br />
services are<br />
40<br />
84%<br />
84% 92%<br />
delivered using the same network through one connection to<br />
8%<br />
the customer 12% premises, 24% with increasing levels of cross functionality<br />
20<br />
2%<br />
between the services.<br />
100<br />
4% 34% 8% 8% 21% 28%<br />
16% 39%<br />
<<br />
Consider, 20% for example, 16% a link on a Web 12%<br />
site 4% 4%<br />
8%<br />
that a consumer<br />
8%<br />
4% 4% 4% 4%<br />
anywhere 0 on the globe can click, from a computer at their home<br />
or on a sales floor, and instantly be connected to a live, human attendant<br />
who speaks the caller’s language and can handle orders,<br />
frequently asked questions, take a message or forward the call 100 to<br />
4% ><br />
VoIP 20% Worse 24% About the Same 52% VoIP Better<br />
the phone of the proper recipient, all for a monthly fee that easily<br />
can be justified by a small amount of newly generated business.<br />
Source: Savatar<br />
Taking things one step further is “fixed-mobile convergence,”<br />
whereby applications seamlessly travel across<br />
0 20 40 60 80 100<br />
both<br />
Cost<br />
Moves, Adds,<br />
Changes<br />
Management<br />
Call Quality<br />
Reliability<br />
Routing<br />
Features<br />
Would 1 you recommend 2 VoIP service 3 to 4 5<br />
your business peers?<br />
Not Recommend Recommend Highly Recommend<br />
2%<br />
Source: Savatar<br />
4% 34% 21% 39%<br />
4% 20% 24% 52%<br />
Source: Savatar<br />
2005<br />
Capacity<br />
2006<br />
Multi-Location<br />
0 20 40 60 80 100<br />
1 2 3 4 5<br />
Not Recommend Recommend Highly Recommend<br />
Employees<br />
Employees<br />
100<br />
<<br />
Employees<br />
100<br />
><br />
Employees<br />
<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 21
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wired and wireless devices. Such services<br />
can automatically forward and direct all<br />
calls (desk, mobile or home phone, for example)<br />
to whatever device is selected by<br />
the subscriber according to time of day,<br />
who is calling, the type of call or other<br />
factors determined by the subscriber.<br />
This is not down-the-road technology.<br />
Rather, theses capabilities already exist, with<br />
most already on the market. And a good deal<br />
of these technologies now are working their<br />
way down market, from Fortune 1,000 and<br />
carrier-level networks to within the reach of<br />
small and very small businesses.<br />
What makes the move down market<br />
possible are a current crop of fully managed<br />
IP communications solutions that remove<br />
all the big hardware and complexity from<br />
the customer premises and places them on<br />
the service provider’s facilities. At one time,<br />
deploying advanced and customized communications<br />
applications required sophisticated<br />
equipment reside at the customer<br />
site or sites and a tech staff be employed to<br />
run things. That’s no longer necessary in<br />
the software-driven IP-based environment,<br />
where voice functionalities, settings, security,<br />
management and remote monitoring all<br />
can be hosted securely by the providers and<br />
delivered for a fraction of former prices.<br />
One such example is multi-location<br />
phone service. Capabilities such as fourdigit<br />
extension dialing to multiple stores<br />
and home-based workers, hunt group<br />
lists, automated attendant/interactive<br />
voice response systems that answer and<br />
direct calls across all extensions or offer<br />
a menu of selections (Press 1 for store<br />
hours, 2 for directions, etc.) and self-administration<br />
tools now can be delivered<br />
without the installation of expensive private<br />
branch exchange (PBX) systems.<br />
Unified messaging, meanwhile, combines<br />
a user’s voicemails, emails and<br />
faxes into one in-box where they can be<br />
viewed and/or directed to the desired<br />
device. Other capabilities of a unified<br />
messaging suite typically include call<br />
screening and preview, do-not-disturb,<br />
one number to receive all phone and fax<br />
messages, call detail records, message archiving<br />
and “find me follow me.” Among<br />
the services gaining early traction with<br />
small business executives and owners,<br />
“find me follow me” automatically dials<br />
a pre-assigned group of phone numbers<br />
until the subscriber is found and the call<br />
is answered, depending on how accessible<br />
that user wants or needs to be. Users<br />
also can direct calls based on day, time,<br />
who is calling or availability, and special<br />
rings can be assigned to certain callers.<br />
Combine the capabilities of find me follow<br />
me, automated voice response, multistore<br />
phone service and click-to-call Web<br />
links and the potential includes providing<br />
a link from an Internet-enabled PC located<br />
on a sales floor that a customer can click<br />
to get a question answered by any department<br />
or expert at any of the connected<br />
stores or home offices, no matter where<br />
that employees is at that moment.<br />
More to the present, existing hosted<br />
IP telephony services include many of<br />
the above features at prices that are below<br />
what most retailers likely pay for<br />
their standard business phones lines<br />
from the dominant telecom providers.<br />
IP-based providers will come knocking<br />
with promises of as much as 50 percent or<br />
more savings off your current phone bill,<br />
but something around 20 to 30 percent is<br />
more reasonable, says Frank Paterno, vice<br />
president of marketing for Intelliverse, a<br />
provider of hosted IP communications.<br />
Intelliverse’s CompleteCall hosted<br />
VoIP service, for example, offers local<br />
phone numbers, unlimited nationwide<br />
calling, multi-store services, unified messaging,<br />
automated attendant, find me follow<br />
me, one number service and more for<br />
about $50 a month per line.<br />
To get on board with the service, it’s<br />
likely new desk phones will be needed or<br />
an adapter be installed so the old phones<br />
can interact with the new network. It also<br />
assumes an existing Internet connection<br />
can handle the load, as the Complete-<br />
Call solution falls under the “bring your<br />
own broadband” scenario. And since<br />
voice traffic is now traveling on the data<br />
network, there must be adequate bandwidth<br />
or voice quality can suffer, which<br />
may be okay for interoffice calling but is<br />
not something customers and partners<br />
should experience.<br />
The big issue with the “bring your own<br />
broadband” approach is the hosted provider<br />
has no control over their customers’ “last<br />
mile connection,” which brings the Internet<br />
into the building. So if the Internet connection<br />
is spotty or temporarily goes down, so<br />
might the voice services in some capacity,<br />
unless a back-up method is deployed.<br />
22 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
In most cases, retailers with a T-1 line or higher are good to<br />
go. A typical digital subscriber line (DSL) or cable modem connection,<br />
meanwhile, normally can handle three to four phone<br />
lines, says Paterno, and still leave enough room for Internet usage,<br />
assuming Internet usage at a location is not too heavy, such<br />
as multiple users on the Web surfing simultaneously and heavy<br />
downloading/uploading of video and graphic files.<br />
In terms of bandwidth allocation, “when it comes to voice<br />
over data, it doesn’t really matter whether you have three or<br />
four phone numbers or how many phone lines or how many<br />
people are at a location. What matters is how many people are<br />
talking or using the Internet at the same time,” says Paterno.<br />
In other cases, some IP-based providers<br />
will require that customers purchase<br />
Internet connectivity from them in order<br />
to get the IP communications solution,<br />
or purchase the data connection from a<br />
partner provider. This approach allows<br />
the service provider to control the last<br />
mile connection to better guarantee the<br />
quality and reliability of the service. It<br />
may or may not save the customer money<br />
over their current voice and Internet<br />
services spending.<br />
Since the voice and data networking<br />
requirements of most specialty retailers<br />
are relatively simple, either option<br />
should be viable in most instances. But<br />
quality and reliability, as well as security,<br />
are important considerations, and so far<br />
have been the primary drawback of VoIP<br />
services. Where the old public switched<br />
telephone network (PSTN) provided<br />
99.999 percent reliability, IP-based voice<br />
networks tend to hover around the mid-<br />
90s in terms of service reliability, particular<br />
those services that utilize the “bring<br />
your own broadband” approach.<br />
On the other hand, performance assurance<br />
continually improves, with service<br />
level agreements now being offered<br />
by select IP telephony distributors.<br />
After all, VoIP still may be a novel concept<br />
to the greater population, but the platform<br />
is actually somewhat mature, widely<br />
deployed for several years across telecom<br />
carrier and enterprise networks. One big<br />
reason why most people are not yet familiar<br />
with VoIP is because the large incumbent<br />
phone companies (Verizon, AT&T, Qwest)<br />
have been given little incentive so far to<br />
cannibalize their existing revenue streams<br />
by offering customers a cheaper way to do<br />
the same thing: make phone calls.<br />
The shift is coming, however, as global<br />
networks migrate fully to IP and the old<br />
circuit-switched, copper networks, which<br />
are more complex and costly to manage, manipulate and upgrade,<br />
are eventually retired. Already, investment in the old networks<br />
has all but ceased.<br />
That’s not to say you will wake up one day and your<br />
legacy-based services will be turned off. The point, rather,<br />
is that a time is coming when the lower cost structures and<br />
higher levels of functionality and innovation made available<br />
through IP networks will be the norm, so the bar will be<br />
raised in terms of how a company communicates internally<br />
and with its customers and partners. And it’s always best<br />
to be somewhat informed and prepared for when the time<br />
comes to make the switch.<br />
<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 23
Teva’s High-Tech<br />
Touch<br />
Point<br />
Interactive POS media<br />
makes its premiere at<br />
outdoor specialty<br />
by Martin Vilaboy<br />
The bleeding edge is not exactly<br />
the place one tends<br />
to find outdoor retail-based<br />
companies. Sure, when it comes to the<br />
gear and garb, innovations in textiles,<br />
design and materials often show up in<br />
the outdoors before they do in most any other consumer<br />
goods market. But most veteran retail executives<br />
will tell you that, collectively, outdoor specialty<br />
is not exactly a leading adopter of the latest in retail<br />
and point-of-sale technology.<br />
Teva, however, is leading the way in the march toward<br />
a POS merchandising revolution.<br />
And Teva isn’t just dabbling with its new POS<br />
video experiment. This spring the outdoor brand<br />
began installing Internet-enabled, touch-screen<br />
video monitors into 100 selected dealers around<br />
the country. More than just your typical self-contained<br />
kiosk with pre-loaded content, the product<br />
information and branded entertainment served up<br />
by these two-way devices is centrally monitored,<br />
managed and updated from a master work station<br />
back at the Teva offices.<br />
“A lot of what you see at retail, the fixtures and<br />
signage, is static,” says Erin Manning, Teva visual<br />
merchandising manager. “This is really a unique opportunity<br />
for retail because it is so dynamic.”<br />
Teva’s touch-screen program<br />
allows consumers to interact with Teva products and branding.<br />
“It is a great synergy for our brand<br />
because of the passionate, active lifestyle that we like<br />
to convey,” she continues.<br />
The touch-screen system also allows Teva to collect<br />
information on what, how and how long customers are<br />
interacting with the devices in order to modify or tailor<br />
content according to the data collected. Shoppers can<br />
interact with the touch screen or provide their contact<br />
information to receive further updates from Teva.<br />
The 12-inch, flat-screen monitors mount right on<br />
the shoe wall, says Manning, “so they will be featured<br />
right where all of our product sits.”<br />
For sure, video and connectivity to the sales floor<br />
have been popping up in most segments of the greater<br />
retail landscape, from big box and consumer electronics<br />
stores to gas stations, car dealerships and shopping<br />
malls. Among the outdoor specialty crowd, one of the<br />
first applications of POS video came from specialty<br />
brand Zeal Optics, which integrated a small, fully<br />
contained monitor into its sunglass and goggle displays.<br />
Timberland also has been experimenting with<br />
24 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
Americans’ View of POS Video, Adults 18 and Over<br />
Have you ever watched video programming in a store, not including on TV<br />
at TV retailer?<br />
Have you ever purchased a product that you hadn’t planned on buying<br />
after seeing it featured in a store’s video programming?<br />
Source: Arbitron, 2006<br />
video at the point of sale in some of its<br />
retail markets. But as far as we know,<br />
this is the first time outdoor specialty<br />
dealers have been exposed to any type<br />
of “retail media network.”<br />
“We are rolling this out with our top<br />
independent specialty dealers, the local<br />
outdoor shops” says Manning. “Those<br />
are the types of retailers at which we<br />
have the opportunity to really reach<br />
our customers.”<br />
To deliver its video merchandising<br />
program, Teva teamed up with Ronin<br />
Wireless Technologies, employing<br />
Ronin’s managed digital signage solution.<br />
Ronin’s software, running on<br />
each of the deployed monitors and at<br />
the central location, handles most of<br />
the work and serves up the end-user<br />
functionalities, such as network management,<br />
customized distribution,<br />
playlist creation, scheduling and database<br />
integration. Ronin also handles<br />
installation, support and security for<br />
Teva, says Manning.<br />
Unlike a true retail media network,<br />
which would be delivered on a private<br />
or virtual private network, the touch<br />
screens are networked through the retailers<br />
existing broadband connection.<br />
Ronin can hard wire the screens or network<br />
them wirelessly, utilizing the ubiquitous<br />
Wi-Fi standard (802.11 a/b/g).<br />
The “bring your own broadband”<br />
approach means retailers’ local area<br />
networks will need to sacrifice some<br />
Consumers Most Interested<br />
in Sales and Product Info<br />
Sales and specials 81%<br />
Info on in-store products 72%<br />
Special events 68%<br />
News 67%<br />
Weather 67%<br />
Topical shows 52%<br />
Gift card info 50%<br />
Music videos 49%<br />
Sports info 46%<br />
Quiz and trivia 36%<br />
Source: Arbitron, 2006<br />
Yes<br />
No<br />
Not<br />
Sure<br />
33% 64% 3%<br />
29% 69% 2%<br />
bandwidth, but service and installations<br />
in a dozen or so pilots, says Manning,<br />
have been “clean, smooth and<br />
non-intrusive to the retailer.”<br />
The content being served up on<br />
the touch-screen monitors currently<br />
is divided into a few categories. First<br />
and foremost, there’s the product information,<br />
dominated by technology<br />
information designed to answer any<br />
questions a consumer may have when<br />
considering a purchase.<br />
As an added benefit, the product<br />
information, available instantly right<br />
there on the sales floor, also serves as a<br />
tool for in-store sales staffers, Manning<br />
points out. “If the sales rep doesn’t<br />
maybe know all five points about a<br />
product, they can refer to this unit and<br />
get a little more information to help<br />
push the product,” she says.<br />
From there, users can move to the<br />
“Teva Tribe” section, which contains<br />
brand and cultural content such as<br />
films from the Teva Mountain Games;<br />
video and information on Teva athletes;<br />
and Teva’s participation in local<br />
events and community efforts, including<br />
its recent involvement with the<br />
IMAX movie, Grand Canyon Adventure:<br />
River at Risk.<br />
“Then we have a kind of ‘get connected’<br />
section, where the consumer<br />
can sign up for sweepstakes and promotions<br />
that will run through the site,”<br />
says Manning. “Right now, for example,<br />
there is a sweepstakes related to the<br />
IMAX film, in which we are giving away<br />
a river trip on the Grand Canyon.”<br />
Indeed, there are still many questions<br />
and doubts surrounding POS video and<br />
Internet connectivity – most notably,<br />
whether or not consumers want to be<br />
engaged on the sales floor and how.<br />
If nothing else, the ability to collect<br />
user engagement data will provide Teva<br />
with some quantifiable metrics that can<br />
be applied to future POS video efforts.<br />
Stay tuned … there’s lots more to come.<br />
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<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 25<br />
ATLAS ® is a registered trademark of SHOWA Glove Co.
POS Software Directions & Directory<br />
by Martin Vilaboy<br />
After a good bit of overspending in the “dot-com” era and the<br />
time leading up to Y2K, retail IT executives were forced to serve<br />
a type of penance, and were pushed into the back room of organizations<br />
where technology was seen mostly as a cost management<br />
mechanism rather than a strategic weapon. For many retailers,<br />
that’s placed even more pressure on already-aging IT infrastructures—point<br />
of sale software and systems notwithstanding.<br />
According to an Aberdeen Group survey of 175 retail companies<br />
in January of this year, for example, 60 percent of respondents<br />
said they are working with POS systems that are<br />
older than five years. Out of that 60 percent, 35 percent have<br />
POS systems in place that are more than 10 years old. Aberdeen<br />
research also shows, by the way, that the “specialty store” segment,<br />
in general, is where one is most likely to find legacy systems<br />
in place.<br />
The Competitive Framework<br />
Process<br />
Organization<br />
Knowledge<br />
Technology<br />
Performance<br />
Source: Aberdeen Group<br />
Best-in-Class Average Laggards<br />
Ability to access Web sites , catalog and fulfill Web generated orders at POS<br />
32% 14% 9%<br />
Ability to process accurate product promotions through POS (prince integrity<br />
and coupon usage)<br />
63% 55% 30%<br />
Ability to provide stores with help desk phone support personnel<br />
61% 47% 34%<br />
Ability to analyze POS data close to real time to plan targeted promotions<br />
for POS execution<br />
41% 27% 11%<br />
Customer-centric hardware, software and peripherals POS technologies can<br />
currently use<br />
- 44% touch-screen POS<br />
with multi-channel<br />
service functions<br />
- 42% POS software for<br />
loyalty programs<br />
- 80% POS software for<br />
gift card processing<br />
- 30% POS system with<br />
CRM software<br />
- 60% universal PIN entry<br />
device for payment<br />
acceptance<br />
- 25% mobile POS<br />
handheld<br />
- 35% SOA for POS<br />
application integration<br />
- 28% touch-screen POS<br />
with multi-channel<br />
service functions<br />
- 30% POS software for<br />
loyalty programs<br />
- 59% POS software for<br />
gift card processing<br />
- 25% POS system with<br />
CRM software<br />
- 21% universal PIN entry<br />
device for payment<br />
acceptance<br />
- 13% mobile POS<br />
handheld<br />
- 14% SOA for POS<br />
application integration<br />
POS performance management parameters used<br />
42% report and manage<br />
customer POS experience<br />
using customer<br />
satisfaction at POS<br />
22% report and<br />
manage customer POS<br />
experience using customer<br />
satisfaction at POS<br />
26 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008<br />
- 14% touch-screen<br />
POS with multichannel<br />
service<br />
functions<br />
- 12% POS software<br />
for loyalty programs<br />
- 36% POS software<br />
for gift card<br />
processing<br />
- 12% POS system<br />
with CRM software<br />
- 11% universal PIN<br />
entry device for<br />
payment acceptance<br />
- 12% mobile POS<br />
handheld<br />
- 9% SOA for POS<br />
application integration<br />
15% report and<br />
manage customer<br />
POS experience using<br />
customer satisfaction<br />
at POS<br />
That may seem reassuring to retailers still tapping away on<br />
older systems, but at the same time, nearly half (47 percent)<br />
of retailers surveyed said complex and time-consuming POS<br />
checkout procedures were a major pressure impacting customer<br />
POS experiences. And as we stress elsewhere in this issue, much<br />
of technology investments moving forward will be influenced<br />
directly by the customer experience and other loyalty drivers.<br />
So while it took nearly half a century for barcode technology<br />
to move from its crude beginnings to something retailers “needed”<br />
to its current universal form, today new technologies come<br />
from multiple directions, adoption cycles move in years rather<br />
than decades and those that fall behind seem to have less time to<br />
regain their competitive position.<br />
The stakes, when it comes to POS systems, have gotten higher,<br />
as well.<br />
“POS applications have moved well beyond the automation<br />
of everyday retail sales transactions,” say analysts<br />
at Gartner, Inc. “Retailers of all sizes no longer see<br />
POS technologies as merely cost-cutting applications but<br />
as key tools to driving revenue growth by enhancing the<br />
customer experience and retaining customer loyalty.”<br />
Indeed, POS transactions are a primary source of<br />
customer and retail data, and that data is being used by<br />
retailers to monitor store performance, manage supply<br />
chains and inventory, plan and allocate merchandise,<br />
develop promotions and marketing, forecast customer<br />
spending and measure customer service.<br />
So it’s probably not surprising that Aberdeen<br />
Group’s “Best in Class” retail companies – in terms of<br />
their performance in a group of standard customercentric<br />
measurement – “are at least two times more<br />
likely than all others to have cutting-edge customercentric<br />
capabilities and enabling technologies that aid<br />
in a consistent approach toward fulfilling customer<br />
needs at POS from an order management, loyalty programs<br />
and guided selling, and payment acceptance<br />
standpoint,” says the research firm.<br />
So you can see where your retail operation stands in<br />
relation to Aberdeen Group’s top performers in customer<br />
satisfaction at the point of sale, below is a completive<br />
framework that details the POS capabilities of the “retail<br />
winners” with a comparison to “average” performers<br />
and “laggards.” Following that are detailed listings<br />
in a directory of POS software providers and resellers<br />
that service outdoor, independent and specialty retail.<br />
Hopefully, it can help with any upgrade, replacement<br />
or migration strategies you may have in the works.<br />
Anyone who would like to see the specifics as to<br />
how Aberdeen Group defines its “Best in Class” with<br />
regard to this discussion, please feel free to contact us<br />
at martin@bekapublishing.com.
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YOUR BUSINESS<br />
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trade fair for the outdoor industry.<br />
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POS Software Providers and their Wares<br />
Big Hairy Dog Information Systems, Inc.<br />
3205 Ramos Circle Sacramento, CA 95827<br />
Phone: 800-377-7776 Fax: 916-368-1411<br />
Contact: info@bighairydog.com<br />
www.bighairydog.com<br />
Company Description:<br />
“Big Hairy Dog information Systems is a premiere support company for leading retail<br />
automation technology. Over a decade of award-winning service has placed BHD as the<br />
leader in POS, inventory management, e-commerce and accounting and support.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Check Authorization<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management<br />
Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/<br />
Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Software Development Kit<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
Celerant Technology Corp.<br />
3830 Arthur Kill Rd. Staten Island, NY 10309<br />
Phone: 718-605-7733 Fax: 718-317-6948<br />
Contact: Michele Majka, mmajka@celerant.com<br />
www.celerant.com<br />
Company Description:<br />
“Celerant Command Retail is a real-time retail management system that manages all areas of<br />
a sporting goods organization including POS, team sales, sales office, inventory management,<br />
warehouse, distribution center, allocation, multi-channel/e-commerce/kiosks, data mining,<br />
and a single, integrated system.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Check Authorization<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/<br />
Management Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
Please see ad one page 29<br />
Cam Commerce<br />
17075 Newhope Street, Ste. A Fountain Valley, CA 92708<br />
Phone: 714-241-9241 Fax: 714-241-9893<br />
Contact: Chester Ritchie, chester.ritchie@camcommerce.com<br />
www.camcommerce.com<br />
Company Description:<br />
“CAM Commerce Solutions designs, develops, markets and services highly integrated retailing<br />
and payment processing solutions for small to medium-size traditional and e-commerce<br />
businesses based on the company’s open architecture software. These integrated solutions<br />
include inventory management, point of sale, accounting, credit and debit card processing,<br />
Internet sales, gift card and customer loyalty programs, and extensive management reporting.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Check Authorization<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
Holds and Quotes<br />
Independent and Distributed Pricing<br />
Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Magnetic Card Reader<br />
Multi-Branch Integration<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/<br />
Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
User Passwords<br />
E.E.S Companies, Inc.<br />
1257 Worcester Rd., #332 Framigham, MA 01701<br />
Phone: 508-653-6911 Fax: 508-650-1872<br />
Contact: sales@eesco.com<br />
www.eesco.com<br />
Company Description:<br />
“POS/OE 4 is a very robust, fully integrated business operations program, which includes the<br />
latest advances in technology. POS/OE 4 operate on the both Mac and Windows and offers<br />
POS, Web order processing, inventory control, CRM, accounting, customized reporting, multistore<br />
location access, real-time PDA access and much more.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/<br />
Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
28 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
POS Software Providers and their Wares<br />
Everest Software Inc.<br />
21631 Ridgetop Circle, Suite 100 Dulles, VA 20166<br />
Phone: 800-382-0725 Fax: 703-234-6680<br />
Contact: Lindsay Barret, lbarret@everestsoft.com<br />
www.everestsoftwareinc.com<br />
Company Description:<br />
“Everest Software is Your Business Operating System. You can efficiently manage every<br />
business process from a single, integrated solution. Everest works the way you do. Support<br />
sales in a shared environment that eliminates duplicate data entry yet allows you total<br />
control. It’s ideal for growing small and medium businesses.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
History<br />
Holds and Quotes<br />
Inventory Management<br />
Multi-Currency<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Multi-Branch Integration<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Sales and Discount Automation/Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Software Development Kit<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Please see ad one page 31<br />
One Step Retail Solutions<br />
22520 N. 18th Dr. Phoenix AZ 85027<br />
Phone: 800-266-1328 Fax: 623-580-8182<br />
Contact: Cyndi Seidler, cseidler@onestepretail.com<br />
www.onestepretail.com<br />
Company Description:<br />
“OSRS is the leading retail technology service provider in the U.S., servicing the technology<br />
needs of specialty retailers since 1985. The company specializes in retail POS software<br />
systems that help retailers be in control of inventory and manage their business more<br />
efficiently. Offices in California, Arizona and New York.”<br />
Features and Capabilities Available in POS Service Offering<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/<br />
Management Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords
POS Software Providers and their Wares<br />
POS-IM<br />
1330 Flint Meadow Dr. Kaysville, UT 84037<br />
Phone: 800-409-7678 Fax: 801-546-6490<br />
Contact: Lynn Horrocks, horrocksl@posim.com<br />
www.posim.com<br />
Company Description:<br />
“We have been providing a leading edge POS and inventory management for Macintosh and<br />
Windows users for more than 20 years. We have a full suite of tools to help your retail store<br />
be more successful.”<br />
Features and Capabilities Available in POS Service Offering<br />
POSitive Software Company<br />
2290 Robertson Dr. Richland, WA 99354<br />
Phone: 800-735-6860 Fax: 509-375-0629<br />
Contact: sales@gopositive.com<br />
www.gopositive.com<br />
Company Description:<br />
“POSitive Software Company has been in business since 1993. Our flagship product, POSitive<br />
Retail Manager (PRM) is a sophisticated yet intuitive POS system built around Microsoft’s<br />
SQL, a robust and scalable database. PRM also has built-in credit card processing and<br />
e-commerce capabilities.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Credit Card Processing<br />
CRM Integration<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multiple Station Management Capabilities<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Sales and Discount Automation/Management<br />
Serial and Lot Number Tracking<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Please see ad one page 33<br />
Radiant Systems<br />
1727 Kirby Parkway Memphis, TN 38117<br />
Phone: 901-681-2800 Fax: 901-681-2902<br />
Contact: Andee Williamson, retailsales@radiantsystems.com<br />
www.counterpointpos.com<br />
Company Description:<br />
“In more than 500 sporting goods stores across the country, Radiant Systems offers a<br />
complete technology solution – CounterPoint software, retail-ready hardware, e-commerce<br />
and technical services – that will help you build customer loyalty, consistently grow sales and<br />
better control operating costs.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Check Authorization<br />
Credit Card Processing<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
Retail Anywhere<br />
4450 El Camino Real Atascadero, CA 93422<br />
Phone: 800-257-2734 Fax: 805-546-1006<br />
Contact: Brenee Staples, sales@retailanywhere.com<br />
www.retailanywhere.com<br />
Company Description:<br />
“Retail Anywhere POS delivers the robust features and functionality required to provide<br />
valuable customer, inventory and marketing information to enhance the overall shopping<br />
experience for customers and increase sale for retailers. A real-time and easy-to-use solution,<br />
Retail Anywhere POS is scalable and flexible to easily handle growth and new functionality<br />
requirements.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Check Authorization<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/Management<br />
Sales Dashboard<br />
Service Rentals<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
30 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
POS Software Providers and their Wares<br />
Retail Pro<br />
3252 Holiday Court La Jolla CA 92037<br />
Phone: 858-550-3355<br />
www.retailpro.com<br />
Company Description:<br />
“Retail Pro is one of the world’s most renowned providers of merchandising software for<br />
retailers. Retail Pro was originally developed in the mid 1980s by Retail Technologies<br />
International and has emerged as the premier store operations solution around the world.”<br />
RunIT Real Time<br />
447 Broadway New York, NY 10013<br />
Phone: 212-431-0707 Fax: 212-431-5666<br />
Contact: Steve Treiber, steve.treiber@runit.com<br />
www.runit.com<br />
Company Description:<br />
“RunIT is real-time POS software systems for independent retailers. From in-store POS to<br />
e-commerce and from inventory management to accounting, RunIT is a complete POS<br />
software solution. RunIT provides all the real-time tools to run your business more profitably.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Check Authorization<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management<br />
Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/<br />
Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Software Development Kit<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
Features and Capabilities Available in POS Service Offering<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Inventory Management<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Touch Screen<br />
User Passwords<br />
RVP Business Systems<br />
6001 Overland Rd. Boise ID 83709<br />
Phone: 208-376-8121 Fax: 208-376-8143<br />
Contact: Tom Welsh, twelsh@rvpsystems.com<br />
www.rvpsystems.com<br />
Company Description:<br />
“RVP Business Systems, established in 1973, provides retail businesses with tools needed to<br />
ensure their business is operating at its maximum level of efficiency. The most cost effective<br />
way to accomplish this is with an open architecture, computer-based POS system.”<br />
Features and Capabilities Available in POS Service Offering<br />
TallySoft<br />
311 South Central Ave. Canonsburg, PA 15317<br />
Phone: 724-873-5264 Fax: 724-873-5265<br />
Contact: Mike Stephenson, mikes@tallysoft.com<br />
www.tallysoft.com<br />
Company Description:<br />
“TallySoft offers a complete software and hardware retail POS, back-office management and<br />
eCommerce solution. Our Windows-based, touch screen allows you to manage your sales,<br />
inventory, customers, employees, cash flow and more. System processes transactions – from<br />
credit cards, gift cards, layaway, serialized inventory, special orders and customer quotes.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Check Authorization<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multi-Language<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multiple Station Management Capabilities<br />
Payment Types<br />
Pricing<br />
Sales and Discount Automation/Management<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
32 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
POS Software Providers and their Wares<br />
VeraPOS Inc.<br />
595 Market St., Ste. 2400 San Francisco, CA 94105<br />
Phone: 415-369-9900 Fax: 415-284-0300<br />
Contact: Doug McNamara, info@versapos.com<br />
www.versapos.com<br />
Company Description:<br />
“VersaPOS, as the name connotes, combines flexibility and capability of handling varied<br />
needs across vertical markets including wineries, jewelry, apparel, home lawn and garden,<br />
candy and chocolate specialty stores, as well as consumer durables. The solution is easily<br />
scalable from a single to chain of stores.”<br />
Features and Capabilities Available in POS Service Offering<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Functionality<br />
Customizable Reporting<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Multi-Branch Integration<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
Winward Software Inc.<br />
Suite 200 – 3547 Skaha Lake Rd. Penticton, BC V2A 7K2<br />
Phone: 800-663-5750 Fax: 250-492-8886<br />
Contact: Mark Rutter, sales@wws5.com<br />
www.sportsstorepos.com<br />
Company Description:<br />
“SportStorePOS by Winward Software is the best software for sporting good companies …<br />
period. It is an integrated POS, inventory management and accounting software package. It<br />
has been designed based on over 20 years of customer feedback to streamline POS, improve<br />
inventory control and drive profitability.”<br />
Features and Capabilities Available in POS Service Offering<br />
Account Credit Notations<br />
Accounting Integration<br />
Barcode Scanning<br />
Cash Register/Drawer Readings<br />
Commission and Incentives Management<br />
Check Authorization<br />
Credit Card Processing<br />
CRM Integration<br />
Custom User Interface<br />
Customizable Fields<br />
Customizable Functionality<br />
Daily Reports<br />
Data Import/Export<br />
Debit Card Processing<br />
eCommerce Tools<br />
Employee Time Clock<br />
End-of-Day Processing<br />
Forms Printing<br />
Gift Card/Certificate/Store Credit Processing<br />
History<br />
Holds and Quotes<br />
Independent and Distributed Pricing Options<br />
Inventory Management<br />
Multi-Currency<br />
Layaway Capabilities<br />
Legacy System Integration<br />
Magnetic Card Reader<br />
Mobile Access<br />
Multi-Branch Integration<br />
Multiple Station Management Capabilities<br />
Optional Peripherals Support<br />
Ordering Automation<br />
Payment Types<br />
Pricing<br />
Refund Automation<br />
Sales and Discount Automation/Management<br />
Sales Dashboard<br />
Serial and Lot Number Tracking<br />
Service Rentals<br />
Supply Chain Management<br />
Tax Recordkeeping<br />
Touch Screen<br />
User Passwords<br />
Warranty Processing Reporting<br />
<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 33
the Use<br />
Intelligence<br />
Gear<br />
Real-Time Visibility<br />
Throughout the organization<br />
High Staff Turnover<br />
Capital Constraints<br />
Camping’s Cool Gear, Lukewarm Outlook<br />
by Martin Vilaboy<br />
Store-Level IT Investment<br />
Meeting High Customer<br />
“Steady, consistent, predictable”: those certainly are terms Expectations Federal & State Taxes Generated<br />
that could describe the camping market during the past several by Activity Category, $Billions<br />
years. “Flat participation” is another way to look at it.<br />
Camping 0 10 20 30 40 50 60 70<br />
$36.4<br />
Bicycling<br />
And it’s hard to see the latter as anything other than negative,<br />
or at least worrisome, when considering the massive role Snow SMBsports All Retailers<br />
$8.8<br />
Percentage $17.7 of Respondents<br />
Trail $11.2<br />
camping sales play in the outdoor specialty sector. Camping-related<br />
Paddling $4.8<br />
activities, for example, annually generate almost as much Source: Fishing Gartner Group<br />
$4.1<br />
0.5 1<br />
retail gear sales as snow-, trail- and paddle-based recreations all<br />
Wildlife viewing $2.7<br />
Influence<br />
Hunting $2.2<br />
combined, say figures from Outdoor Industry Association. The<br />
Source: OIA<br />
federal and state taxes generated by camping are more than<br />
double those generated by bicycling, which is the number two Camping, for many, is thought of as a “family activity,” and<br />
activity in terms of tax dollars generated.<br />
How surveys Winners support Focus the on anecdotal Customer-Centricity<br />
assumptions that “camping” is<br />
Looking at the sheer numbers of participants, camping ranks<br />
Educate<br />
largely<br />
and empower<br />
reliant on families setting up a base next to their cars.<br />
behind only hiking, biking and fishing, according to OIA’s most our in-store In a 2005 employees OIA survey, for example, eight out of ten “car campers”<br />
90%<br />
recent participation figures, while the annual spending on durable<br />
using technology<br />
and about two-thirds of those who camped 67% away from<br />
goods per camping participant is second only to skiers their Add self-service cars (63 percent) said they go camping with other family 86%<br />
customer-facing Technologies<br />
among the primary categories of outdoor activities, at about members. We’d venture to guess that a goodly chunk 67% of the<br />
to Improve<br />
It’s all about our product<br />
$440 a year compared to skiers’ $480 a year.<br />
mix. If families we build it, found they at America’s campgrounds are what would 81% be<br />
nels<br />
considered will come. “traditional” families – two parents living together 80%<br />
U.S. Outdoor Activities Markets Comparison, 2006Focus on a<br />
with<br />
more convenient<br />
a couple of kids and maybe a dog.<br />
77%<br />
87%<br />
12%<br />
customerexperience<br />
64%<br />
Participants Gear Retail<br />
Category<br />
The problem is a shift in some U.S. demographics that’s<br />
(000s) Sales ($M)<br />
Improved in-store<br />
71%<br />
leading security to fewer and fewer traditional families to draw from.<br />
65% Camp-based recreation 23% 12% 45,161 $8,676<br />
69%<br />
More According personalized to figures from the U.S. Census and The Brookings<br />
Hunting 12,800 $6,886<br />
73%<br />
Institution, attention from both the average number of persons per household<br />
47% Fishing 36% 16% 32,900 $6,416<br />
our Employees<br />
58%<br />
Bicycle-based recreation 59,837 $6,230<br />
in the U.S. and 0% the percent 20% of family 40% households 60% compared 80% to 100%<br />
total U.S. households have been in decline for well more than<br />
71% Trail-based recreation 26%<br />
55,834 $3,340<br />
Retail Winners<br />
a decade, with those All declines Other<br />
Snow-based recreation 15,587 $3,125<br />
expected to continue into the<br />
5% Paddle-based 51% recreation14%<br />
23,596 $2,668<br />
foreseeable future.<br />
Source: Retail Systems Research<br />
Source: OIA<br />
Then again, maybe camping as a category really hasn’t had<br />
40% 34%<br />
a fair chance. For at least the last two decades, after all, the<br />
In other words, for most general outdoor stores, camping<br />
61%<br />
53%<br />
remains the 33% primary 6% reason why most folks walk through<br />
the doors, and with those campers come all manner of addon<br />
and impulse 38% sales. 9% Even for the more niche-enthusiast,<br />
sport specialty shops, it’s certainly not unusual for hard core<br />
Annual Durable Goods Expenditures Per Participant<br />
$500<br />
rtant<br />
climbers, Not paddlers very important or anglers to visit a campground as part<br />
of their play, so if camping is not a good part of your marketing<br />
$400<br />
and merchandising strategies, an opportunity likely<br />
t Important<br />
is being missed.<br />
$300<br />
Yet since OIA began tallying participation rates in<br />
1998, charts tracking how many people go camping and how $200<br />
often have been nothing but flat, with virtually no period of<br />
sustained growth.<br />
$100<br />
Certainly, it’s not hard to understand the powers working<br />
against camping’s popularity, such as some recent trends involving<br />
$0<br />
“done in a day” adventures, close-to-home pursuits and<br />
“outdoors as a gym.” At the same time, some much larger national<br />
trend lines aren’t exactly making the outlook any rosier for<br />
future participation.<br />
Bicycle<br />
Source: OIA<br />
Water Sports Camping Trail Snowsports<br />
34 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
PRECISION INTRUMENTS<br />
suunto.com<br />
Visual Impact/Thomas Ulrich<br />
Suunto Vector<br />
The adventure begins, 1998<br />
Suunto Core<br />
Adventure reborn, 2008<br />
It started in 1998 with the Suunto Vector, the wristop that redefined outdoor adventure. Nearly a decade later we<br />
introduce the Suunto Core, a wristop that turns mountains into molehills. The next stage in outdoor adventure has arrived.<br />
The original Suunto Vector and the new Suunto Core. Let the adventures begin.<br />
Available at specialty outdoor and sporting goods stores.<br />
Visit suunto.com to learn more about Suunto outdoor<br />
sports instruments.<br />
Available at specialty outdoor and sporting goods stores.
Gear<br />
“outdoors,” and “outdoor activities” largely have been presented,<br />
at least to mainstream audiences, almost exclusively through<br />
high-energy action sports, speed, thrills and the element of risk.<br />
Most folks, most of the time, simply don’t often run into messaging<br />
that emphasizes communing with nature or bonding with<br />
friends and relatives. Maybe that needs to change. A recent survey<br />
by Leisure Trends, for example, suggests Americans are split<br />
on whether outdoor time should be used for physical exercise or<br />
relaxing, with 56 percent preferring to take it easy and socialize<br />
when outdoors and 46 percent preferring to be active.<br />
There also might be an opportunity to align with the nation’s<br />
concerns over the economy by re-emphasizing the<br />
financial relief afforded by a camping vacation, even when<br />
including any initial gear purchases. Nowadays, a brand new<br />
family tent came be gotten for less than $200, sometimes<br />
less than $100. That’s clearly less than a few nights at a hotel<br />
for a family of four, and the tent can be used for several years.<br />
Appetizing food, meanwhile, easily can be packed nowadays<br />
for a fraction of the cost of a few meals at a restaurant, and<br />
the campground is far removed from the snack shops, t-shirt<br />
stands, arcades and activities that empty a parent’s wallet at<br />
a typical tourist trap.<br />
Indeed, there is a small amount of historical data to suggest<br />
such a case would resonate with consumers. After the attacks<br />
of 9/11, another period in time when Americans experienced<br />
a sense of instability, there were brief but noticeable rises in<br />
number of total camping outings and the average number of<br />
outings per participant. In 2002, both outings and frequency<br />
hit their highest levels since the late 1990s.<br />
There’s also lots of cool gear and gadgets to rally around, in<br />
terms of both equipment and accessories. To get some of those<br />
creative, marketing juices flowing, following is a small selection<br />
of innovative new items that we believe possess strong sellthrough<br />
potential among the crowd of campers.<br />
Eureka! N!ergy Screen House<br />
After hearing the “oohs” and “ahs” over its original N!ergy tents<br />
last year, Eureka added the N!ergy Screen House for this year. Ideal<br />
for campgrounds, picnics or a full day at<br />
the soccer field, the new N!ergy<br />
Screen House features all the<br />
benefits of Eureka!’s portable<br />
and rechargeable E! Power<br />
system to power 12-volt accessories<br />
inside the tent.<br />
The three-season screen<br />
house contains four<br />
independently controlled<br />
outlets. Three are<br />
detachable and can swing to the center of<br />
the screen house for table-top use. The fourth, fixed outlet is positioned<br />
in the center of the ceiling to power an overhead light or fan.<br />
This six-pole rectangular screen house has 120 square feet<br />
of interior space, and the factory installed wiring system<br />
can be removed by unfastening the hook-and-loop closures<br />
of the built-in wiring sleeves. Suggested retail is<br />
$214.90 (including the E! Power Pak, sold separately).<br />
www.eurekatent.com<br />
Primus EasyLight Latern<br />
The EasyLight offers just about everything a<br />
camper would want in a lantern. It’s compact, bright<br />
and easy to light. Running on pressurized gas canisters,<br />
the EasyLight also features a patented, almost<br />
noiseless burner and adjustable brightness settings<br />
that max out at 80 Watts. The EasyLight weighs 6.8<br />
ounces and requires only 55 cubic inches of pack<br />
space. Made of corrosion and maintenance-free<br />
materials, it comes standard with a piezo electric<br />
igniter and retails for $65. www.nagear.com<br />
Fozzils ThinkFlat Tableware<br />
There are no more good excuses to use paper plates at the campsite.<br />
Fozzils ThinkFLAT designs are super light, pack flat then snap<br />
into full-size tableware with a few folds. Easy to clean with a nonstick<br />
surface, Fozzils are designed<br />
for the ultra-light backpacker<br />
but also can be conveniently<br />
used for short hikes, picnics,<br />
travel and even as dog bowls.<br />
My kids even have taken their<br />
foldable bowls to the movie<br />
theatre to divide up that big tub<br />
of popcorn. www.fozzils.com<br />
La Fresh Sunscreen Travel Wipes<br />
Applying sunscreen lotion to squirming kids is not exactly a fun<br />
time for parents, and it’s never easy<br />
to make sure their sun-exposed<br />
parts get full coverage. Sunscreen<br />
travel wipes make the<br />
job so much easier, and La<br />
Fresh uses “high-end sunscreen”<br />
and biodegradable<br />
towelettes for its new<br />
SPF 30 Sunscreen<br />
Travel Wipes. Easy to<br />
pack, with no risk of<br />
leaks or messy explosions,<br />
the wipes<br />
come in packs of<br />
four at a suggested<br />
retail of $4.50. Also new<br />
from La Fresh are all-natural,<br />
biodegradable and Deet-free insect repellant towelettes.<br />
www.LaFreshGroup.com<br />
36 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
Gear<br />
Coghlan’s Micro Latern<br />
The LED Micro Lantern stands a<br />
mere 2 inches tall and weighs around<br />
1 ounce with batteries – making it one<br />
of the smallest and lightest lanterns<br />
around the campsite. The Micro Lantern<br />
features a rugged plastic body with a water-resistant<br />
rubber switch and a keychain<br />
mounted on top. For distress situations,<br />
the Micro Lantern has a flashing mode that<br />
blasts out its bright LED light for a full 50<br />
hours using two three-volt button cell batteries.<br />
In regular mode, the batteries will last for<br />
up to 25 hours. www.coghlans.com<br />
HitchSafe Key Vault<br />
Having once dropped my car keys in a rolling stream, at night,<br />
while camping in Carson National Forest, New Mexico, it’s not<br />
hard to see the value of the HitchSafe Key Vault. Better<br />
for spare key storage<br />
than crawling<br />
under your truck<br />
to find where<br />
you put the<br />
hide-a-key, the<br />
HitchSafe also<br />
addresses the dilemma<br />
of securing keys,<br />
cash and credit cards at<br />
times when carrying them<br />
can be a hassle, or there is<br />
a chance that any cash or credit cards left in the vehicle could<br />
be stolen. The HitchSafe is secured with two hitch pins inside<br />
the hitch receiver via two sliding metal bolts. The bolts can be<br />
removed only when the 10,000-combination drawer is removed,<br />
and the combination drawer is concealed and protected with a<br />
dust cover. It takes only seconds to install/uninstall with no tools<br />
required. www.hitchsafe.com<br />
Java Log & Pine Mountain Firelogs<br />
The U.S. Forest Service says transporting firewood lets treekilling<br />
insects hitch a ride into the woods. These insects cause<br />
billions of dollars in damage, lost revenue and prevention expenses<br />
every year. In some states, bringing firewood into parks<br />
is no longer allowed, and in-park firewood collection tends to be<br />
discouraged, if not prohibited. The solution? Turns out shopping<br />
may be more eco-friendly than chopping. The new Java-Log, for<br />
example, is made with recycled spent coffee grounds and allnatural<br />
wax, while all-Natural Pine Mountain firelogs are made<br />
from renewable resources, including recycled sawdust and<br />
all-natural wax. Both Java-Log and Pine Mountain firelogs are<br />
longer-burning than firewood, (2 to 3 hours per log), produce<br />
fewer emissions than firewood and require no kindling or stoking<br />
(simply light the paper wrapper). www.Java-log.com, www.<br />
pinemountainbrands.com<br />
Fargason Tent Chair<br />
It’s always a bonus when a product has multiple applications,<br />
and the Tent Chair is ideal for just about any activity under<br />
the sun. Aside from the campground, the Tent Chair is ideal for<br />
the beach, watching little<br />
league games, waiting for<br />
the fish to bite or in the<br />
back yard by the pool. It’s<br />
designed to set up in minutes,<br />
weighs 10 pounds in<br />
its carrying case and can<br />
support adults up to 295<br />
pounds. It features two<br />
large, zippered windows in<br />
the canopy and a zippered<br />
storage pouch. Fargason<br />
offers the Tent Chair in<br />
five colors: blue, red, yellow,<br />
crimson, camouflage<br />
and checkered flag. www.<br />
fargasonoutdoors.com<br />
<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 37
Floor Space<br />
Gramicci’s Real Estate Investment<br />
by Martin Vilaboy<br />
Gramicci doesn’t claim to be revolutionizing the retail buying<br />
process. Rather, buyers within the largest retail segments, such<br />
as food and drug, mass merchandise and department stores,<br />
for years have handled ordering and replenishment in much<br />
the same way that Gramicci is proposing, says Marty Weening,<br />
Gramicci president.<br />
That’s not so much the case within the outdoor segment,<br />
however, and so Gramicci’s new “visual merchandising matrix”<br />
program and the corresponding buy plans represent a possible<br />
point of evolution for its outdoor specialty dealer base.<br />
The outdoor industry’s traditional buying process for apparel,<br />
which forces buyers to pour over extensive products lines,<br />
cherry pick the particular SKUs that might appeal to their specific<br />
customer base, estimate demand for the units and then<br />
merchandise the disparate garments together on the sales floor<br />
(repeat and reorder), lacks simplicity, efficiency and fails to address<br />
a key element of the retail business, say Weening.<br />
“Retail is a matter of real estate,” he says.<br />
With that in mind, Gramicci has simplified purchasing, re-ordering,<br />
inventory control and point-of-sale merchandising for its<br />
dealers via three pre-established buy plans based on the fixtures<br />
and square footage a retailer is willing to dedicate to the brand.<br />
The three different visual merchandising matrices, meanwhile,<br />
quickly show how the garments and collections merchandise<br />
together on the retail floor, each being a three-dimensional representation<br />
based on the allotted square footage.<br />
“Buyers are under a tremendous amount of pressure,” says<br />
Matthew Kaseta, Gramicci vice president of sales, faced with<br />
a growing number of brands, expanding product lines and<br />
shorter deadlines. “So our goal is to make it as easy as possible<br />
for them.”<br />
Gramicci Buy Plan Sample, Women’s<br />
Date Units Dollars<br />
G 350 Buy Plan (Space requirement, less wall, 350 square feet)<br />
Delivery 1 6/15 450 $10,000<br />
Delivery 2 8/1 520 $15,000<br />
G 350 Totals - 970 $25,000<br />
G 240 Buy Plan (Space requirement, 240 square feet)<br />
Delivery 1 6/15 250 $6,000<br />
Delivery 2 8/1 350 $9,000<br />
G 240 Totals - 600 $15,000<br />
G 120 Buy Plan (Space requirement, 120 square feet)<br />
Delivery 1 6/15 188 $3,500<br />
Delivery 2 8/1 184 $6,000<br />
G 120 Totals - 372 $9,500<br />
Retailers can choose from three preconfigured buy plans:<br />
G 120, G 24O or G 350, the numbers representing the respective<br />
square-footage space requirement. Utilizing their<br />
existing fixtures, retailers then receive branded toppers for<br />
each fixture and a selection of pre-merchandised apparel to<br />
match the corresponding rack space and square footage,<br />
the apparel broken down by gender and pre-determined delivery<br />
dates.<br />
Again, the driving force behind the program is to simplify<br />
matters for the buyer. Gramicci realizes its line of apparel is big<br />
and broad. And while the company has broken down its offering<br />
into four collections (Authentic Originals, Built for Sport, Gramicci<br />
Life and Greenicci), the G buy plans provide added focus,<br />
reducing the amount of guesswork on the part of the buyer and<br />
easing the decision-making process.<br />
Of course, “the last thing you want to do is tell a buyer,<br />
‘You have to buy this’” says Kaseta. And so the buy plans and<br />
merchandising matrices ultimately that may be serve as recommendations.<br />
Buyers are welcomed to tailor and tweak the<br />
selection of garments according to their local demographics,<br />
climate and so forth.<br />
A retailer in Texas, for example, might prefer to swap out<br />
some of the long-sleeve tops within a buy plan assortment with<br />
more short-sleeve tops, and while each G plan initially contains<br />
garments from all four Gramicci collections, a retailer that may<br />
be near a college campus can increase the number of garments<br />
from the Gramicci Life or Greenicci collections.<br />
Granted, opting into one of the Gramicci buy plans require<br />
buyers to place a good deal of trust in Gramicci’s designers and<br />
merchandisers, possibly reducing the input of any local market<br />
expertise and instinct. On the other hand, partners in the VMM<br />
platform benefit from Gramicci’s 25 years of design expertise,<br />
market research and intelligence.<br />
Gramicci also maintains a network of about a dozen retailers<br />
across the country, ranging from single-store operations to<br />
national chains, from which the company collects sell-through<br />
data twice a month, says Kaseta. “It gives us an idea of what<br />
is moving, what styles are selling and what colors are selling in<br />
what markets.”<br />
That data, likewise, can be applied to modifying and updating<br />
Gramicci’s buy plans.<br />
And more information, in turn, makes any decision-making<br />
process that much simpler, “and more accurate,” adds Kaseta.<br />
“If we can provide that information and help our retailers<br />
improve their sell through, as well as their margin and their confidence<br />
in Gramicci,” he continues, “that’s only going to benefit<br />
them, and us, as well.”<br />
38 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
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Back Office<br />
On the Records<br />
Remaining safely behind the corporate veil<br />
by Phil Josephson<br />
Corporation: An ingenious device for obtaining profit without<br />
individual responsibility. ~Ambrose Bierce<br />
PCV Equipment LLC and its members are sued for breach of<br />
a distribution agreement, and the court finds against PCV and its<br />
members. Outdoor Advanced Company fails to get the capital<br />
infusion it desperately needed. U.S. Outfitters & Marine Corp.<br />
comes out on the wrong end of an Internal Revenue Service<br />
audit, and the company and its shareholders have to restate<br />
financials and pay penalties. The planned acquisition of HighKing<br />
Systems is postponed, and the acquisition price is reduced.<br />
What do all of these entities and scenarios have in common?<br />
In each case, the entities and their shareholders/members<br />
failed to follow corporate formalities and failed to keep proper<br />
and thorough corporate records.<br />
Business owners choose to get into business and choose<br />
an entity form that suits their situation. The primary concern to<br />
the business owners in choosing the entity form is typically the<br />
protection from risks that a growing business may face. The key<br />
to this protection, however, is in maintaining the independent<br />
existence of that entity going forward. Failure to treat the entity<br />
properly and as an independent entity will erode the shield afforded<br />
by the entity, and personal liability can ensue. Thus, in order for<br />
any entity to preserve its special, limited liability status, it must<br />
observe certain formalities and take certain actions. Formalities<br />
include (minimally) the issuance of ownership certificates,<br />
electing officers and directors, following the company bylaws/<br />
operating agreement, maintaining proper corporate records and<br />
keeping corporate and personal funds clearly separate. If these<br />
formalities are not followed, the entity and its limited liability<br />
status are vulnerable to attack. Here are some examples.<br />
Piercing the Veil<br />
Company shareholders/members generally are insulated<br />
from personal liability for the company’s debts. This limited<br />
liability is known as the “corporate veil.” But the veil is not an<br />
absolute shield. In some cases, a court may pierce the veil and<br />
hold a shareholder/member personally liable. Piercing is most<br />
commonly done when a company is the shareholders’ “alter<br />
ego” or is used to evade creditors.<br />
In our hypothetical example above, PCV Equipment failed to<br />
observe corporate formalities and the court found that the members<br />
were treating the entity as another pocket. Thus, the corporate veil<br />
is pierced, and the three members are held responsible for the<br />
breach and associated damages. To paraphrase a leading authority,<br />
if the shareholders/members or the company disregards the legal<br />
separation or proper formalities of the company existence, then<br />
the law will likewise disregard them.<br />
Growth Plans<br />
Outdoor Advanced Company needed a capital infusion to<br />
help with some upcoming cash flow issues that they anticipated.<br />
The company was not “in trouble” but certainly needed the<br />
additional cash in order to pursue growth plans. Though OAC<br />
had a good relationship with its lenders, the company was<br />
unable to produce certain minutes and resolutions during the<br />
standard due diligence process. The lenders viewed this not<br />
as an “oversight” but rather an egregious failure to operate an<br />
entity. OAC subsequently received lending but months later<br />
from a different, less-friendly source.<br />
Audit<br />
Pursuant to a routine audit, the Internal Revenue Service<br />
came calling to Outdoor & Marine Corp. and its handful of<br />
shareholders. Outdoor & Marine Corp. was unable to timely<br />
produce necessary corporate records, was unable to show<br />
that it was following company bylaws and was unable to show<br />
loan documentation with certain shareholders. As a result, the<br />
IRS forced the shareholders and the company to restate their<br />
financial position and prior tax returns.<br />
Exit Strategies<br />
The owners of HighKing Systems were thrilled to<br />
have a suitor interested in acquiring the company.<br />
The owners stood to profit handsomely from the transaction<br />
based upon the offer price in the letter of intent.<br />
During due diligence, however, the potential acquirer found<br />
discrepancies in the corporate records and associated<br />
capitalization ledger. This led to distrust, months of follow<br />
up and a renegotiation of the purchase price. The transaction<br />
Protecting the Company and the Veil<br />
Document capital infusions<br />
Prepare annual minutes for meetings of shareholders/members and directors<br />
Adopt resolutions reflecting approval of all major company actions<br />
File annual statements and pay necessary fees<br />
Make sure the entity’s structure is correctly documented and well documented<br />
Maintain thorough and accurate corporate records<br />
Properly hold and document shareholder/member meetings<br />
Properly hold and document director/manager meetings<br />
Properly hold and document special meetings of directors and of shareholders/<br />
members<br />
Follow the bylaw/operating agreement<br />
Document loans between the company and shareholders/members<br />
40 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
Back Office<br />
was subsequently contemplated but at a lower price than<br />
the owners anticipated.<br />
Record Breaking<br />
The maintenance of proper and thorough corporate<br />
records is vital to the ongoing existence of the company. The<br />
corporate records provide a historic road map of the company<br />
for anyone that may review the records in the future. This<br />
does not mean that a company must have a written record<br />
of each trip to Office Depot. But, for transactions outside the<br />
ordinary course of business or those that enable the company<br />
to be in business, appropriate documents should be in the<br />
corporate records.<br />
Rule of thumb: document anything for which you do not<br />
want someone held personally liable. The corporate veil is only<br />
as thick as the corporate record book.<br />
Keeping corporate records should not be painstaking, and<br />
thus it is hard to conceive that the hypothetical scenarios above<br />
occur each day. First, actually hold all meetings called for by<br />
the bylaws/operating agreement. For all of those meetings,<br />
be sure to send out notices as prescribed for in the bylaws/<br />
operating agreement. Second, create succinct minutes of<br />
meetings, not a scroll of everyone’s thoughts. Finally, execute<br />
and file all appropriate notices, proxies, minutes, resolutions<br />
and amendments.<br />
Proper and thorough corporate records are essential, and<br />
the failure to maintain these records can be detrimental to the<br />
company and its owners, as illustrated above. But maintaining<br />
corporate records should not be a chore. Rather, think of<br />
proper and thorough corporate records as the foundation for<br />
the company’s existence.<br />
At anytime, you (or anyone) should be able to look at the<br />
corporate record book for a historic roadmap of key decisions<br />
made and the reasons for those decisions. In addition, the<br />
corporate record book should also provide a snapshot of the<br />
company’s legal, financial and capitalization health, which<br />
will place the company in an advantageous position as you<br />
present yourself before providers of capital and exits.<br />
Philip Josephson is the founder of the Law Office of Philip<br />
Josephson. Philip and the firm deliver corporate legal and<br />
business advisory services to clients throughout North America.<br />
Philip holds a J.D. from the University of Miami, a M.B.A. from<br />
Columbia University; is a member of the Florida Bar, the Arizona<br />
Bar, and the Federal Communications Bar; and may be contacted<br />
at pjosephson@josephson-law.com.<br />
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<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 41
Greensheets<br />
Carbon Footprint 101<br />
Part II: Preparing for a Life Cycle Assessment<br />
by Ernest Shiwanov<br />
In the last issue of Inside Outdoor (Winter 2008), we<br />
covered the concept of carbon footprint and the tools used<br />
to make that assessment (IO archives can be found at www.<br />
insideoutdoor.com). Part II will cover what you probably will be<br />
looking at in terms of dollars and time for your operation’s life<br />
cycle assessment (LCA).<br />
The good news is technological advances and recent<br />
revisions in process LCAs and Economic Input Output LCAs<br />
(EIO-LCAs) have made the process viable for just about any<br />
level of business. Your LCA professional will guide you through<br />
an evaluation of your business so you will know what level<br />
of assessment would be appropriate. What follows is a brief<br />
refresher on the LCAs and basic information on some of the<br />
companies that are providing this service.<br />
Let us begin by reviewing the three basic methods of<br />
LCAs:<br />
1. For process LCA or bottom-up LCA, ISO (International<br />
Standards Organization) 14040-2006 and 14044-2006 is the<br />
methodology.<br />
2. Economic Input Output LCA (EIO-LCA) or top-down LCA is<br />
based on the work of W. Leontief. It uses a general equilibrium<br />
model that makes a simplified assumption regarding the<br />
output of goods in a commodity sector and its proportional<br />
relationships to other sectors. More and more, EIO-LCA<br />
service providers are incorporating process LCA elements<br />
into their analysis, if appropriate, for their clients.<br />
3. Hybrid LCA, like the car that uses both gasoline and electricity,<br />
runs on process LCA and EIO-LCA methodologies.<br />
Process LCA<br />
Five Winds International director John Heckman says that<br />
Five Winds has done ISO 14040 conforming studies for under<br />
$10,000 and in less than 30 days. He is quick to point out that<br />
Five Winds also has undertaken studies that last several years<br />
at cost commensurate with the commitment. Every business is<br />
unique, so you can assume that your business probably will be<br />
somewhere in between those two sets of circumstances.<br />
As far as the nuts and bolts go, Heckman explains that the<br />
starting point for an ISO 14040 study is the “goal and scope”<br />
definition meeting with the client. He suggests if you want to see<br />
what you need to prepare for an LCA, read ISO 14040 and 14044.<br />
As it turns out, ISO 14040 and 14044 were simplified in 2006 to<br />
make the standard more user friendly, cutting the amount of pages<br />
nearly in half, resulting in ISO 14040-2006 and 14044-2006.<br />
Heckman likens the standards to accounting rules for<br />
mapping “all material and energy flows from cradle to end-oflife.<br />
It’s very analogous to financial accounting, really.”<br />
He goes on to say that the World Resources Institute (WRI)<br />
and the World Business Council for Sustainable Development<br />
(WBCSD) and ISO 14064.1-3 are on the same page in bringing<br />
about carbon dioxide measurements. In fact, a quick check<br />
revealed that ISO, WRI and WBCSD elected to jointly promote<br />
both the ISO standards 14064 and WRI’s and WBCSD’s<br />
GHG Protocol Initiative (GHG = greenhouse gas). Their first<br />
promotional event was held at the UN Climate change meeting<br />
last year in Bali.<br />
On the differences between process LCAs and EIO-<br />
LCAs, Heckman uses an analogy of a magnifying glass and a<br />
microscope, “both being useful tools to a researcher.” However,<br />
if you require the actual environmental impact analysis for the life<br />
cycle of materials and their energy flow, and have the money to<br />
do a complete study, process LCA is the most appropriate tool.<br />
“There is no substitute for actual data,” he says.<br />
Conscious Brands’ experience, meanwhile, lies in the organic<br />
food and beverage industry. Guayaki (yerba matte tea, etc.) and<br />
Manitoba Harvest are just two of Conscious Brands’ clients.<br />
Rob Sinclair and Oliver Ferrari are the principle consultants that<br />
have partnered with Greenhouse Gas Protocol (GHG Protocol<br />
Initiative, see above), Zerofootprint and ISO 14040 in bringing<br />
carbon mitigation strategies to their clients. A typical study will<br />
take at least six months and cost around $10,000.<br />
However, it is worth mentioning that both Sinclair and<br />
Ferrari are on steering committees involved in the Carbon<br />
Trust-sponsored British Standards Institution Publicly Available<br />
Specification 2050 or BSI PAS 2050 standard.<br />
According to the Carbon Trust Web site, “The PAS aims<br />
to bridge the gap between the existing detailed (process<br />
LCAs) and more general approaches (EIO-LCAs) and provide a<br />
standardised, consistent method organisations can practically<br />
use for measuring the GHG emissions embodied in products<br />
and services.” The PAS 2050 standard has an egalitarian “for<br />
the people, by the people” foundation, as Sinclair explains. It<br />
was developed with the help of many businesses, industries<br />
and thousands of individuals.<br />
Despite this emerging hybrid LCA standard, Sinclair and<br />
Ferrari feel there is a disconnect between the organic foods<br />
consumers buy and the way carbon numbers relate to them.<br />
For that reason, during the next six to 12 months, they will<br />
be working on a method for taking the numbers derived from<br />
the various assessment tools to the “next step.” That is a way<br />
for consumers to get their hands around the meaning of GHG<br />
mitigation. This effort will be represented in a scheme called<br />
www.carbonlabels.org, a joint project by Conscious Brand’s<br />
Sinclair and Ferrari and Zerofootprint. This initiative goes beyond<br />
42 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
Greensheets<br />
the scope of this article but is worth the time to see what is<br />
happening right here in North America. Stay tuned.<br />
Rebecca Graham of Scientific Certification Systems says her<br />
company has various certifications to document environmental<br />
performance. Clients can have a “single attribute claim” study<br />
performed for just recycled and reclaimed content or can take<br />
it a step further and go through an Environmentally Preferable<br />
Product (EPP) certification. The latter is oriented toward product<br />
or products in a company’s range that have environmental<br />
advantages over their competitors in the marketplace. For<br />
instance, you may have an EPP certification done on day packs<br />
from your environmentally friendly product line in order to<br />
distinguish them from similar products by your competitors.<br />
SCS’s most comprehensive analysis is its full Lifecycle<br />
Assessment and Environmental Performance Declaration<br />
(EPD), “for companies that want to know the full environmental<br />
effects of the processes and products they offer,” say company<br />
executives. The cost to start with Phase 1, the scope definition,<br />
is $5,000. You actually can initiate the process online and pay<br />
with PayPal.<br />
SCS will send a representative to your company for a day<br />
to train key personnel in life cycle principles and data inventory<br />
requirements necessary for Phase 2 of the EPD. Since every<br />
company is different, and SCS’s comprehensiveness is based<br />
on the complexity of the study, the total cost is determined<br />
after the scope definition for Phase 2 is complete. Time to<br />
completion of the EPD is based on the intricacies of the study.<br />
EIO-LCA and Hybrid LCA<br />
Climate Earth’s co-founder Chris Erickson saw a major vacuum<br />
in the LCA industry. He believes that most methods require<br />
“detailed low-level analysis,” can take many months to accomplish,<br />
are expensive and still do not provide a “total enterprise view.”<br />
Therefore, he and his team have developed a threepronged<br />
approach to obtaining carbon reduction strategies<br />
using a hybrid method.<br />
The company’s Revenue Based Assessment (RBA) is its<br />
most inexpensive carbon footprint assessment that analyzes “the<br />
enterprise’s footprint, from cradle to consumer.” The client supplies<br />
company product revenue figures and country of origin data.<br />
Climate Earth returns, according to its Web site, an executive-level<br />
evaluation of the business’s carbon “footprint by product category<br />
and major supply chain function.” The RBA provides a baseline for<br />
a company’s sources of CO2 emissions and is usually completed<br />
in a week for $2,295 for up to five product categories. Additional<br />
standard product categories can be added for $200 each. Custom<br />
product categories can be added for $400 each.<br />
The next step up from Climate Earth is its Expense Based<br />
Assessment or EBA. This report can be generated in about<br />
10 days for $5,995. Here, the EBA adds a more thorough<br />
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<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 43
Greensheets<br />
representation of the client’s business, including cost structure<br />
to the RBA’s baseline. Obviously, with a more comprehensive<br />
understanding of the business, the goals and feedback on<br />
carbon footprint are more precise.<br />
An extension of the EBA is the Mitigation Assessment (MA). The<br />
MA quantifies specific mitigation targets that are, in turn, integrated<br />
into the EBA. Contact Climate Earth for details on this service.<br />
Elsewhere, Climate Cooler’s Michel Gelobter is soon to be<br />
on a DVD near you. As one of the experts in The 11th Hour, a<br />
global warming documentary narrated by Leonardo DiCaprio,<br />
Gelobter has had a lifelong academic and activist commitment<br />
to the environment. With his Cooler Complete, he has come<br />
up with a scalable solution for retailers and manufacturers<br />
committed to becoming carbon neutral.<br />
Since he offers a hybrid approach, the time to complete a<br />
study varies with the depth of the analysis. The costs vary as<br />
well, with “an average of 0.05 to 0.3 percent of a product’s retail<br />
price for its service,” he explains. To initiate the work, you will<br />
need the price of the product, weight and country of origin.<br />
Climate Cooler also has an e-commerce Web site called<br />
Cooler. Cooler makes it easy to allow consumers to eliminate<br />
greenhouse gases attributed to purchases made on the site.<br />
The consumer has thousands of goods or services to choose<br />
from by many manufacturers or retailers, such as REI, Target<br />
and Sony. Once the online purchase has been made, the<br />
participating manufacturer or retailer pays Cooler. Then Cooler,<br />
through carbon offset partners, obviates the global warming<br />
impact of what was sold in 30 days or less.<br />
The above sampling of LCA providers are part a growing<br />
number of organizations that can help a retail or manufacturing<br />
business get on the carbon-neutral highway. Do your homework<br />
before you commit to a firm, and make sure your products or<br />
services complement the provider’s area of expertise.<br />
As carbon mitigation standards and verification strategies<br />
evolve, the LCA industry will become more standardized<br />
and precise. During the next several years, scientific and<br />
technological advances will continue to shape the way we deal<br />
with GHG emissions.<br />
Unfortunately, as a civilization, we have little time to dwell<br />
on the coming changes in the LCA standards.<br />
Sources and Contacts<br />
www.climatecooler.com<br />
www.climateearth.com<br />
www.consciousbrands.com<br />
www.carbonlabels.org<br />
www.zerofootprint.net<br />
www.fivewinds.com<br />
www.scscertified.com<br />
www.sylvatica.com<br />
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<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 45
Green Sheets<br />
The Green Glossary<br />
by Ernest Shiwanov<br />
Buzz words like sustainability, compostable<br />
and cradle-to-grave are regularly<br />
bandied about by authorities and spinmeisters.<br />
Many use terms interchangeably<br />
or incorrectly. So Inside Outdoor decided<br />
to parse the greenwash lexicon and take<br />
a stab at a short glossary of definitions.<br />
The following definitions are as organic<br />
as the topics they address. They are more<br />
operative than definitive, with the underlying<br />
subtext being about the discourse that<br />
we hope to continue. Indeed, these definitions<br />
are “alive,” and we expect them<br />
to evolve as new standards are set, technologies<br />
are developed and our industry<br />
grapples with the “sustainability” (see below)<br />
of our businesses. A la Wikipedia, we<br />
welcome anyone who would like to add,<br />
change or modify definitions to submit<br />
their insight to ernest@bekapublishing.<br />
com. The Green Glossary will continue to<br />
appear in future issues of IO.<br />
Biodegradable<br />
Aerobic decomposition of a organic<br />
matter through the action of microorganisms<br />
or aerobes. There are no standards<br />
for eco-toxicity or length of time before<br />
degrading to biomass and, in some cases,<br />
eco-toxins.<br />
Cap and Trade<br />
See Emissions Trading.<br />
Carbon Neutral<br />
or Carbon Offset<br />
To offset or neutralize net greenhouse<br />
gas emissions.<br />
This can be achieved by planting trees,<br />
using renewable energy, energy conservation<br />
and emissions trading. Critics contend<br />
there is no definitive evidence that carbon<br />
offsets work since there are no models<br />
or standards that clearly demonstrate<br />
the equilibrium.<br />
Compostable<br />
The biodegradability of an organic material,<br />
mostly to biomass, water and carbon<br />
dioxide. Compostable environments<br />
include industrial settings and common<br />
garden or open space locations. All standards<br />
agree on a six-month period for the<br />
organic matter to degrade. Most standards<br />
support these tests:<br />
• Does it biodegrade to carbon dioxide,<br />
water, biomass at the rate paper biodegrades?<br />
• Does the material disintegrate leaving<br />
no distinguishable or visible residue?<br />
• Are there any eco-toxic materials left,<br />
and can the remaining biomass support<br />
plant growth?<br />
American Society for Testing and<br />
Materials (ASTM) D6400-99 says to<br />
be considered compostable, materials<br />
must undergo degradation by biological<br />
processes during composting to yield<br />
carbon dioxide (CO2), water, inorganic<br />
compounds and biomass at a rate consistent<br />
with other compostable materials,<br />
leaving no visible, distinguishable<br />
or toxic residue.<br />
The EN (European Committee for<br />
Standardization or Comité Européen de<br />
Normalisation) standard is even more<br />
specific. EN13432 states that a material is<br />
deemed compostable if it will breakdown<br />
to the extent of at least 90 percent to H2O<br />
and CO2 and biomass within six months.<br />
There are other standards as well with<br />
DIN V49000 from the German Institute<br />
for Standardization being the strictest<br />
in the allowance of heavy metals. Many<br />
might be familiar with DIN standards for<br />
their safe release ski bindings.<br />
Cradle-to-cradle<br />
The life cycle of a product from manufacture<br />
to re-manufacture.<br />
46 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
Cradle-to-gate<br />
The life cycle of a product or process<br />
from manufacture to end-user. Also<br />
known as environmental product declarations<br />
(EPD).<br />
Cradle-to-grave<br />
The life cycle of a product from manufacture<br />
to end-of-use disposal.<br />
Degradable<br />
A material that undergoes chemical<br />
change and a loss of original characteristics<br />
due to environmental conditions.<br />
There are no requirements for time, process<br />
or toxicity for this method.<br />
Emissions Trading<br />
A practice in which businesses are<br />
given an emissions cap, in the form of<br />
credits, that allows them to pollute up to<br />
a maximum credit level. Businesses that<br />
exceed their cap must purchase (or trade)<br />
credits from a company that has not exceeded<br />
its cap.<br />
Some problems with the Cap and<br />
Trade concept include where to set the<br />
initial levels of the caps, retiring old credits,<br />
resetting caps, and regulatory/compliance<br />
standards.<br />
Environmental Product<br />
Declarations (EPD)<br />
The life cycle of a product from manufacture<br />
to end-user. Also know as cradleto-gate.<br />
Gate-to-grave<br />
The life cycle of a product from the<br />
end-user to end-of-use disposal.<br />
Life cycle assessment (LCA)<br />
A comprehensive assessment of the<br />
impact of a product or process, from<br />
inception to the end of its “life.” The assessment<br />
includes transportation of raw<br />
materials to the manufacturer, manufacturing<br />
of materials, transportation of<br />
materials to the product manufacturer,<br />
manufacturing of product, transportation<br />
of product to end-users, impact of product<br />
by end-user and disposal of product<br />
by end-user.<br />
The assessment has been used as a<br />
tool to evaluate a product’s or company’s<br />
eco-performance, which in turn can be<br />
used to improve it.<br />
Life Cycle Management (LCM)<br />
An integrated approach to sustainable<br />
production and consumption through the<br />
management of a product’s or process’<br />
life cycle.<br />
Life Cycle Energy<br />
Analysis (LCEA)<br />
The total life cycle energy input. Criticism<br />
in utilizing LCEAs include the argument<br />
that different energy sources have<br />
different potential value (exergy). Additionally,<br />
critics contend that LCEAs’ energy<br />
currency cannot supplant economic<br />
currency as the determinant in business.<br />
Organic<br />
In textile technology, organic refers to<br />
standards ensuring sustainable practices<br />
during all phases of fiber production.<br />
Beginning with every aspect of cultivation<br />
under the National Organic Program<br />
(NOP) guidelines, post-harvest wet processes<br />
such as dying and bleaching, textile<br />
fabrication, manufacturing of goods,<br />
transportation, worker environment,<br />
labeling/compliance, packaging, exportation<br />
and importation are comprehensively<br />
addressed.<br />
Presently, there are no processing<br />
standards for organic fibers from the U.S.<br />
federal government beyond cultivation<br />
ending with the consumer.<br />
<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 47
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Oxo-biodegradation<br />
A two-step process that begins with<br />
degradation by oxidation, followed by biodegradation.<br />
A variation of this developed for polymers,<br />
such as polyethylene, add a degradability<br />
component during the material’s manufacturing.<br />
The added component allows<br />
the polymer to thermo- (heat), photo- (light),<br />
or hydro- (water) degrade within 90 days in a<br />
commercial composting environment.<br />
It is purported that in non-commercial<br />
composting environments, the biodegradation<br />
will take place but at a much<br />
slower rate.<br />
RoHS<br />
An acronym for Restriction of Hazardous<br />
Substances Directive (the lead-free<br />
directive).<br />
Although not a law, the European Union<br />
passed this directive in 2006, limiting the<br />
use of six materials in any part of electronic<br />
and electrical products. The six materials<br />
limited by RoHS are: lead, mercury, cadmium,<br />
hexavalent chromium (chromium VI or<br />
Cr6+), polybrominated biphenyls (PBB) and<br />
polybrominated diphenyl ether (PBDE).<br />
PBB and PBDE are flame retardants used in<br />
some plastics.<br />
Similar standards have been adopted<br />
in China, Japan, Korea and California. The<br />
U.S. federal government currently has no<br />
plans to adopt a similar directive.<br />
Recycling<br />
The U.S. Department of Energy defines<br />
recycling as “the process of converting<br />
materials that are no longer useful as designed<br />
or intended into a new product.”<br />
Renewable Energy<br />
The U.S. Department of Energy defines<br />
renewable energy as “energy derived from<br />
resources that are regenerative or for all<br />
practical purposes cannot be depleted.<br />
“Types of renewable energy resources<br />
include moving water (hydro, tidal and<br />
wave power), thermal gradients in ocean<br />
water, biomass, geothermal energy, solar<br />
energy and wind energy.<br />
“Municipal solid waste (MSW) is<br />
also considered to be a renewable energy<br />
resource.”<br />
Sustainable development<br />
Economic, social (political) and environmental<br />
development that is harmonized<br />
for the good of all interests.<br />
Many, including the United Nations,<br />
use the definition from the Brundtland<br />
Report Our Common Future that “sustainable<br />
development is development that<br />
meets the needs of the present without<br />
compromising the ability of future generations<br />
to meet their own needs.”<br />
Others contend that this is not an operational<br />
definition and that the concept<br />
is best defined as “a socio-ecological process<br />
characterized by ideal-seeking behavior<br />
on the part of its human component,”<br />
which is adapted from the work of Russell<br />
Ackoff and Fred Emery, among others.<br />
Nevertheless, there are some that consider<br />
the phrase a greenwash oxymoron. To many,<br />
the concept of growth and depleting nonrenewable<br />
resources are mutually exclusive.<br />
Zero Waste<br />
An approach to the cradle-to-cradle<br />
concept that includes reduction of product<br />
or process waste and consumption,<br />
plus advancing the notion of reuse, repair<br />
or return to the environment.<br />
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<strong>Spring</strong> 2008 | <strong>InsideOutdoor</strong> | 49
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CORRESPONDENCE<br />
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50 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2008
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